China Is Not Going Broke! It Is Slowing Down 9 Years Without A Rate Rise
The world is worried about China, but not for the right reasons. Global financial markets were roiled after the world’s second largest economy is not growing at the rate it would like to.The reality is that China is unlikely to witness those astronomical growth rates, at least for some time. We may never see them again as we need to accept that the global economy is slowing down!
From a share market point of view and it was another week of high volatility where sentiment swung from being ultra bearish to widespread bargain hunting, given heightened uncertainty about emerging markets’ growth and US monetary policy.
But in all honesty these two factors remain unresolved, very much in play and potentially interrelated as the FOMC (The Federal Open Market Committee – the equivalent of our Reserve Bank)meets in two weeks time. Nevertheless, markets for equities and commodities continued their recent recovery but gains in all, other than oil, were lower than recent peaks. There was considerable amounts of data out on Friday night especially in the US, but it provided no definitive message for the FOMC meeting other than things are going okay and the FOMC’s Vice Chair stated in an interview that he was unsure about voting for a rate hike in September, which added to the market uncertainty.
On a different notea couple of weeks ago we were asked what is a comfortable retirement and how much do you need?The Current Affair Interview aired last Monday weekend can be viewed here.Click here to see our thoughts.
Finance Heads Up Of The Month:
Medibank shareholders! If you or a family member were a shareholder as of the27thof July 2015 and the share registry did not have your banking details recorded thenyou will need to provide them athttps://www-au.computershare.com/The details need to be recorded by the 1stof September 2015 as Medibank are not wanting to pay cheques to shareholders! if you have any questions please call us or email us at [email protected]or speak to Ajla, Leah or Scott on 1300-1234-36.
Remember to hear my finance updates on Tom Elliott’s Drive every Thursday from 3.30pm where I take your calls on anything finance! If you missed the latest showsclick here to listento the highlights.