eWombat Search
Latest Financial Planning News
Hot Issues
Global economy synchronised and thriving
Life's financial turning points: good and not-so-good
2011 Census - what was the make up of your area?
Resources on our site to help you, your family and your friends.
ATO set to release guidance targeted for SMSF clients
More withdrawals from 'the bank of mum and dad'
Tax headache relief: Here’s more help with pension assets changes
Most Aussies shun super advice
Australia in a nutshell
ATO finalises guidance on transfer balance cap
Fit for purpose? The super story so far...
SMSFs urged to review segregation clauses in trust deed
Big insto addresses CGT misconceptions
Dollar-cost averaging for millennial investors
Calls for calm over pending CGT amendments
Almost the world's best for retirees
ATO reports on top contravention areas for SMSFs
What recent retirees can teach pre-retirees
Deloitte points to ‘red flag’ SMSF patterns
Save early, save often
Government pushes forward with multinational tax measures
Jump-start your retirement savings
Government urged to rectify ‘legislative shortcoming’ with CGT relief
Some financial terms explained
Areas of key focus for SMSFs in 2017.
Powerful Superannuation modelling tools available on our site.
Your New Year reading: beyond John Grisham
What a long-term view of the market can teach investors
CGT confusion seeing unnecessary sell-offs
Articles archive
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Global economy synchronised and thriving

The global economy has maintained steady growth in the second quarter of 2017, providing a solid foundation for risk assets such as equities and corporate credit which further encourages investors to build a diversified portfolio, according to JP Morgan.



       


 


Speaking at a media roundtable event in Sydney this week, JP Morgan global market strategist for Australia Kerry Craig said while 2017 held many uncertainties, such as European political outcomes or the decisions of the US Federal Reserve, it was expected to be a constructive year for risk assets including global equities, corporate credit and emerging market (EM) debt.


“Suddenly we are at a point which is very different to where we’ve been for a very long time - everything became more co-ordinated and synchronised in terms of outlook,” he said.


“There are a lot of positive opportunities coming through internationally for investors outside of the US, with the longer term view being that they should actually look at the global economy.”


Focusing on the domestic market, Craig noted that Australia had fallen behind the rest of the world, which could be a direct response to the absence of a fiscal boost.


“While the rest of the world is looking great Australia is lagging a little bit because you haven’t had that fiscal boost come through,” he said.


The underperforming labour market saw the Australian unemployment rate rise to 5.9 per cent in February, creating a push for the government to introduce improved policies in the upcoming budget.


“The market will be looking for that infrastructure spend and looking for what’s going to happen with tax cuts and any changes around the interest in the housing market,” Craig added.


“The RBA [Reserve Bank of Australia] can only do so much about addressing demand. They can’t increase supply – it’s the government that needs to do that through infrastructure, whether it’s the release of land or changing rules about why interest-only loans are so attractive for business.”


The firm also suggested corrections in the market should be welcomed by investors as an opportunity to deploy cash and allocate towards risk assets in their portfolios.


“We believe corrections in markets in the months ahead could be attractive entry points to build a stronger portfolio which benefits from the solid global growth environment,” Craig said.


 


By Leanne Abbas  
13 Apr 2017
financialobserver.com.au




18th-May-2017
 

Australasian Financial Management | ABN 23 001 467 572 | AFM Advisers | ABN 39 003 717 824 | Trading as AFM Advisers | Authorised Representatives of: Apogee Financial Planning Limited | ABN 28 056 426 932 // Australian Financial Services Licensee | Registered Office at: 105-153 Miller Street North Sydney NSW 2060 | Site by PlannerWeb