Finance News

From the monthly archives: December 2021

We are pleased to present below all posts archived in 'December 2021'. If you still can't find what you are looking for, try using the search box.

Omicron, property, CSL and Christmas - what a combo!

Posted on Tuesday, December 21, 2021
There have been some big guarantees made by politicians just a few days before Christmas. Of course, there is the standard one-liner that there will be no more lockdowns! Then last week the government claimed one million jobs will be created over the next four years, inflation is expected to be steady, and wages should rise by 3%.   But all that's based on some rather heroic assumptions including that the Omicron COVID variant won’t alter reopening plans, and there won’t be any new restrictions that limit our activities.   I hope you’re more confident than I am on all of the above. To reflect on the year, the standout asset classes were shares and property. Last week I interviewed Eliza Owen head of research at Core Logic, who said it was a year like no other on the property market. Click to listen to that chat.   I learned that the total value of residential real estate rose from $7.2 trillion to a truly staggering $9.4 trillion in the past 1 ... Read the rest of entry »

Should we expect a "Santa Rally" this year?

Posted on Thursday, December 9, 2021
As we come to the end of the year, we will all reflect on a number of things we have experienced in 2021, and plan for 2022.    But when you reflect on your investments, particularly your superannuation, pension account, or personal investments in shares, I predict you will be more than satisfied. We have been lucky that our client base has regularly checked in with us regarding their attitude to risk. The attitude in the majority of cases has been long-term, meaning our clients haven’t panicked when markets have dropped – in fact some have seen it as an opportunity to buy. So where to from here?   Traditionally in December we see what’s called the “Santa Rally”, so unless another COVID variant pops up in the next couple of weeks, history tells us markets should rally coming into the new year.   Over the longer term, the key measure to watch in 2022 will be inflation. Increasing inflation will result in Federal Reserve Banks across the world s ... Read the rest of entry »

Market volatility is the new COVID-normal

Posted on Thursday, December 2, 2021
Market volatility is back! And whilst December is historically a strong month for global share markets, this year could be different. Last night the Dow Jones was up more than 400 points, then the news hit that the COVID-19 Omicron variant had turned up in California. This sent the market into panic mode, falling 500 plus points at the close. And this is just a day after the head of Moderna said existing COVID-19 vaccines may not be as effective against the Omicron variant, which is now appearing in a growing number of countries around the world.   Experts are saying it's premature to assume that Omicron could derail economic growth, but COVID is a winter disease and markets are always looking forward, now to the northern winter. So what does all this mean for you?   Firstly, volatility can mean opportunity. Depending on your personal circumstances and risk profile, there might be opportunities to take advantage of the fluctuations. If that’s you, we’re happy to he ... Read the rest of entry »

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