The new year has brought a new set of opportunities in the global economy. Now is a great time to assess the investment markets! We have had many enquiries from new clients looking for financial advice for 2017.
It would be prudent, to begin with a disclaimer that this article doesn’t take into account your specific circumstances. Investments that may suit one client may not be appropriate for another. It would be best for you to seek specific financial advice by making an obligation free appointment with an Endorphin Financial Advisor. They will review your situation and be able to tailor specific investments for your needs.
A brief review of investments in 2016
2016 was quite a volatile year in financial terms which reduced consumer’s confidence levels. The year produced modest growth after initial concerns about global growth and deflation. Even despite political events in Australia, the UK and of course in the US.
The Australian economy (particularly the eastern cities) performed relatively well over the year bolstered by building and construction activity in the residential sector. The Australian market Index was up 11.5%, while the broader Global market Index Fund increased by 8% in AUD terms for the calendar year.
Financial Advice – Insights for 2017
Locally, we expect the Australian market to have a solid year overall. We’re likely to see larger Australian stocks with sustainable yields and fully franked dividends continue to be appealing. We’ll be paying particular attention to companies in the Healthcare and Technology fields as they look to benefit from our increasingly ‘aging’ and ‘technologically savvy’ population.
Global shares should continue to trend higher this year compared to 2016. We will be looking for well-priced opportunities in Europe and in Japan where companies are poised to benefit from the lower Yen. It will be interesting to monitor the direction of the US economy as Donald Trump takes office. Many of his pre-election promises have already been withdrawn, and we’re interested to see what effect any potential ‘tweets’ at 2am might have on the Dow Jones.
Emerging Markets may underperform if the $US continues to strengthen. This is due to increases in their interest bill on borrowings as most of their debt is in $US. Company valuations in this sector are considerably cheaper than similar companies in the developed world.
Asia’s growing middle class is predicted to add US$5.5 trillion in growth by 2020, almost double what is expected of the US. A great report titled ‘Imagining Asia 2020‘ has some amazing statistics on the opportunities available from the growing continent.
The investment landscape will continue to evolve over the coming year, making it even more important to consider your investments carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your goals.
Director and Financial Advisor
Endorphin Wealth Management
Phillip Richards is a qualified Financial Advisor with more than ten years’ experience in the industry.
Contact Phillip today to discuss how you can build your own wealth and plan to reach your goals.
This information is general in nature and does not take your personal situation into account.
Contact Endorphin Wealth Management for quality financial advice so you can feel good about your future.