Are you happy with your investment returns? 

 

Markets have continued to display some volatility of late, with a variety of factors having an influence. Investors are weighing up whether to retreat to the relative safety of less risky assets or to continue to pursue returns from more growth-oriented assets. In this blog, we take a brief look at some of these developments, and their potential impact on your investment returns. 

 

One of the key factors affecting global markets of late has been the ongoing US-China trade dispute. While the outcome remains uncertain for the moment, companies in the US have continued to deliver positive news; when third-quarter earnings results were released recently, around three-quarters of companies exceeded market expectations. It seems that demand from US consumers remains reasonably positive, and the US economy is also being supported by previous reductions in interest rates by the US Federal Reserve.

 

Closer to home, we have seen some company or industry-specific factors influencing markets. Investors are waiting for further information on the major fire at the Convention Centre and its impacts for Fletcher Building, while our electricity generators have been buffeted a bit by Rio Tinto’s move to reopen negotiations on the price of electricity at the Tiwai Point aluminium smelter.

 

In Australia, market performance was impacted by the major banks taking further charges relating to the remediation of customers for previous issues.

 

On the interest rate front, the market continues to expect a further cut in the Official Cash Rate by the Reserve Bank. For investors with money in term deposits, we don’t expect to see an improvement in returns in the foreseeable future.

 

Understanding how these various factors come together to affect your investment assets can be challenging, but we’re here to help.

 

If you’d like to know more about the financial markets and current economic trends, check out our regular publication The Monthly View. To read the full November Monthly View, please click here.

 

You can also speak to one of our experienced advisors to see how you can achieve meaningful returns on your investments. Alternatively, call us on 09 308 1450 to find out more.