Will the sharemarket resurgence continue?
Welcome to 2013 and all the joy your financial planning will bring this year! We hope it echoes the comments in our newsletter to start 2012: “It’s going to be a good year.” Such optimism was rewarded with good investment returns for our client portfolios over 2012.
We believe 2013 will see a continuation of the rising investment markets. You may like to read the full article by leading economist Dr Shane Oliver on our website. Some of the key points of the article follow:
- While 2012 had its share of worries, it turned out far better than feared and sharemarkets and growth assets were able to generate strong returns for investors. This was boosted by investors looking for higher yields in the face of zero or falling cash rates.
- The combination of diminishing extreme global downside-risks, a modest pick up in growth as the year progresses and attractive valuations for most growth assets point to another year of reasonable returns in 2013. Expect interest rates to remain low globally and fall a bit further in Australia.
- The main risks going forward relate to US budget and debt problems, a relapse in Europe, slow growth in Australia and a sharp back-up in bond yields if investors get more confident.