2017-18 saw strong returns for diversified investors – but there’s a few storm clouds around

2017-18 saw strong returns for diversified investors – but there’s a few storm clouds around Key points 2017-18 saw strong returns for diversified investors, but it was a story of two halves with strong December half returns but more volatility in the past 6 months. Key lessons for investors from the last financial year include: turn down the noise around financial markets, maintain a well-diversified portfolio; be cautious of the crowd; and cash continues to …

The world economy in 2018 – how much longer can the global upturn last?

The world economy in 2018 – how much longer can the global upturn last? Key points The global economic environment and corporate profits remain in a strong position and economic growth in 2018 will run at its fastest pace since 2011. It’s too early to fear a significant lift in global interest rates. Central banks in Europe and Japan will keep interest rates unchanged in 2018. US rate hikes will continue. Inflation is likely to …

Could last year’s strong equity returns keep on rolling?

Could last year’s strong equity returns keep on rolling? Aussie battler On the home front, the economic cycle in Australia is less advanced than in other developed economies. Activity remains subdued as housing investment moderates and consumers remain cautious on account of anaemic wages growth. Nonetheless, the preconditions for an improvement in growth are in place. Business confidence has improved and there is evidence of broad-based acceleration in business investment. At the same time, large …