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Market corrections , market dips, bear markets..... who loves them? Not many...but what if I told you that maybe you should…?

Actually, they’re never called any of the above. They’re always called a crash.

...Without the Bullshit

The Global Financial World has had a lot going on over recent years. Ever since the Global Financial Crisis, interest in the economic situation has peaked among the general public, although it is easy to get lost in the financial jargon.

Three reasons why Australia may come through this period of global misery better than most countries.

As Australia continues to weather the COVID storm, it’s easy to only focus on the present.

Should you be concerned about what's going on in the share market/s lately?

The fear of fear itself or something more fundamental? Following are some key points:

• The malaise in financial markets is continuing with Australian shares now joining Europe, Japan and emerging markets in a bear market.

Is the global economic recovery on track?

Yes. We anticipate global growth around 5.5% this year on the back of reopening sustained by vaccines, fiscal stimulus, easy money and pent-up demand as evident in double digit household saving rates. Global business conditions are strong.

Key points

• Inflation will likely slow later this year but remain well above pre-pandemic levels over the medium term.

What does the 2018-19 Federal Budget mean to the majority of our clients?

Watch the following video for a summary of proposed changes in Federal Budget 2018-19 by Sydney Financial Planning's CEO Bill Bracey.

Key points

• Shares are at risk of a short-term correction or consolidation, but investment markets should provide solid returns this year on the back of continuing economic recovery and low interest rates.

Key points

• 2020 was dominated by the coronavirus pandemic but shares saw okay returns on the back of policy stimulus and vaccine optimism – resulting in constrained but positive returns for balanced growth super funds.

Key points

• Australian growth is likely to remain weak over the next year. Expect further monetary & fiscal stimulus.

Key points

• 2021 saw strong investment returns with low volatility.

What’s the risk and implications for other assets like shares & property?

• Rising global growth and rising commodity prices indicate the risks to inflation are gradually moving to the upside. This is most acute in the US with the Fed likely to raise rates more than the market expects this year.
• This supports the view that the 35-year super cycle decline in bond yields is over.

Happy end of financial year! Bill Bracey of Sydney Financial Planning provides an economic update for the new financial year (July 2019).

On 22 March 2020 the Government announced a further package of measures designed to stimulate the economy and assist individuals and businesses with mitigating the negative economic impacts associated with the Coronavirus pandemic.

triggering (another) correction in share markets

Key points

• The trade war between the US and China is escalating, posing a rising threat to global growth.
• Although we remain of the view that a deal will be reached, the risk has increased.

Key points

• Share markets have hit the wobbles lately on the back of a long worry list ranging from growth concerns, central bank tapering, the US debt ceiling and fears of about China Evergrande’s problems.

We look at a few statistics on what has happened with the economy so far and insights into what's to come.

...and turn down the worry list

We are going through one of those periods where it seems there is a long list of things for investors to worry about: the US election; the Fed; ever present fears about a break of the Eurozone; and China.

The 2019-20 Federal Budget promise...

This evening the government has stuck to its plan for building a stronger Australian economy, headlined by announcing a $7.1 Billion surplus next financial year. Below is a link to our practical summary of the pre-election budget

Key points

• Despite continued volatility, 2019 is likely to be better for diversified investors than 2018 was.
• Watch the US trade war, the Fed, global business conditions indicators, Chinese growth, politics and the Sydney and Melbourne property markets as well as the upcoming Australian Election in May 2019.

Key points

• Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2- 2.5%.
• As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.