Wealth Management – Investing in North America

Wealth Management – Investing in North America 1Wealth Management – Investing in North America

The United States has been the world’s largest economy since 1871. We have been invested in the region since the onset and we continue investigate this part of the world for wealth management strategies for our clients.

The US is highly advanced in terms of technology and infrastructure and makes up 25% of the global gross product. There’s a myriad of options available too, with some 2,800 companies being actively traded on the New York Stock Exchange.

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Standard & Poor’s 500 Index

The S&P 500, seen as a leading indicator of US equities and a reflection of their performance. The index is a portfolio of the largest 500 companies in the US market ranked by their size. From Apple Inc making up 3.6% of the total, down to the 500th largest company in the market.

The largest companies have changed considerably over time from the early 2000’s. The market was previously dominated by oil companies such as Exxon, PetroChina and Royal Dutch Shell. The top 5 largest companies today are all technology based and this trend looks set to continue.

The FANGs are sharp

Leading the technology charge has been the companies affectionately referred to as the FANGS. Facebook, Amazon, Netflix and Google (Alphabet) have seen a meteoric rise over the last three years with the stocks up 150%, 220%, 220% and 80% respectively. Compare this to the S&P 500 increasing by just 27% over the same period. As the chart below shows, the last 6 months have been no exception either:

Wealth Management – Investing in North America 4
Source: The Motley Fool (https://www.fool.com/investing/2017/05/15/fang-stocks-are-absolutely-crushing-it-in-2017-tim.aspx)

Further, these company’s revenues have been soaring and activity from users is growing as we continue to integrate our lives with our devices. The companies hold market leading positions in their segments and are driven by some of the world’s best business minds.

On the flip side, the value of the companies has factored in significant growth expectations, making them relatively expensive compared with their competitors. They are at risk if there is a shift in their long-term growth prospects which could spark large swings in their price.

US recovers strongly

The US economy is recovering rather well after being hit hard through the Global Financial Crisis of 2008. The US central bank has begun raising official cash rates and unemployment (below) has significantly reduced since 2010. The share market has responded well to many lead indicators as well as rising company profits for most investments held by our firm. We still see pockets of value in the US market however, like always, careful research and selection are required to avoid value traps and poor long term performance.

Wealth Management – Investing in North America 5
Source: US Department of Labour (https://data.bls.gov/pdq/)

How Endorphin Wealth Management can help

Non aligned

The advice we provide at Endorphin is always in our client’s best interests because we are not licensed by the big financial institutions. We’re able to access a range of products from different providers that can be tailored to our client’s needs.

We also utilise subscriptions to three of the top research providers in Australia to cross reference our research and recommendations.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best wealth management strategies for our clients and have developed a number of systems to manage and track the marketplace. We’ve been able to identify some excellent options for our clients to invest in the US market.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at advice@endorphinwealth.com.au

Phillip Richards and Robert Rich
Endorphin Wealth Management

Financial Advisor Phillip Richards
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. 
Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Financial Advisor Robert Rich
Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. 
Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.

 

 

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.

Endorphin Wealth Management – IFA Excellence Awards

Endorphin Wealth Management – IFA Excellence Awards

We’re very pleased to announce that Endorphin Wealth Management has been named as a finalist for the 2017 IFA Excellence Awards in the following categories:

Holistic Advice Firm Of The Year

Holistic Adviser Of The Year – Phillip Richards

Now in its fourth consecutive year, the annual ifa Excellence Awards recognises individual and company achievements in the independent, boutique and privately-owned financial advice sector, and is the only industry awards solely benchmarking success in this field.

“The finalists of the ifa Excellence Awards are among the top financial professionals in Australia and have been selected on the basis of high performance on various business, innovation and client service metrics,” said Aleks Vickovich, managing editor of ifa.

“Their involvement in this program singles them out as a high-quality financial advice practitioner that has the best interests of clients at the very centre of their business.”

The winners will be announced at a cocktail awards ceremony on Thursday, 7 September at The Star, Sydney.

https://www.ifa.com.au/ifa-awards/winners/2017-finalists

How Endorphin Wealth Management can help

Non aligned

Here at Endorphin, we have are not licensed by the big banks and financial institutions, so the advice we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s needs. We also utilise subscriptions to three of the top research providers in Australia to cross reference our research and recommendations.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best wealth management strategies for our clients and have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals and to create a happy and carefree retirement. We want all of our clients to get on with enjoying their life rather than worrying about money.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at advice@endorphinwealth.com.au

Phillip Richards and Robert Rich
Endorphin Wealth Management

Financial Advisor Phillip Richards
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. 
Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Financial Advisor Robert Rich
Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. 
Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.

 

 

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.

 

Wealth Management – Global Infrastructure

Wealth Management - Global Infrastructure 1Wealth Management – Global Infrastructure

Global infrastructure assets are long term developments or projects serving communities around the world.  They are assets that economies require to function and prosper such as airports, gas, electricity, water and roads. Which Wealth Management strategies are you considering to benefit from these assets?

Good infrastructure improves the competitiveness of economies and generates high productivity.  In addition, the ongoing maintenance and development of these assets requires large spending programs, which in turn creates local jobs.

Infrastructure can make for an attractive part of your wealth management strategy due to:

* Long term contracts usually guarantees revenues for many infrastructure companies,

* Demand for the services are usually stable and not affected by economic cycles, and

* High barriers to entry exist for competitors due to the complexity of the projects being completed

Global Growth Projections

Global population levels are forecast to grow from around 7.5 billion today to 8.5 billion by 2030, 9.7 billion by 2050 and 11.2 billion in 2100[1]. For a government to maintain and increase the standard of living for its population, it will need to continue to invest in projects to support the rising populations.

Worldwide infrastructure is expected to total more than $9 trillion (that’s $9,000,000,000,000) by 2025[2] to provide for this growth. Emerging markets are expected to make up around half of this growth as the rural population moves to urban centers. This will result in spending growth in sectors such as water, power, telecommunications and transport.

Wealth Management – Global Infrastructure 2

How can you benefit from all this growth?

Potential benefits to your portfolio include:

* Diversification benefits from having assets that aren’t as sensitive to economic conditions due to the stable demand for their services

* Revenues should grow over time for user-pays infrastructure assets such as toll roads, airports and railways

* Usage charges for the services are usually tied to the rate of inflation

* Infrastructure companies can generally build cashflows for their investors that are less volatile than the broader listed share market

Focus Company – Italgas

Wealth Management - Global Infrastructure 3
One of the companies focused on by infrastructure fund managers is Italgas (www.italgas.it/en/). They are the market leader in Italy in delivering gas to households and businesses throughout the country. Italy is the third largest gas market in Europe and the company is positioning itself to take advantage of further growth.

Italgas has a very clear vision for preserving their profitability and looking to continue building on their solid balance sheet and strong cash flows. More information on their strategic plan can be found at (http://www.italgas.it/up/italgas/ITALGAS-Strategy_2017_2023.pdf)

How Endorphin Wealth Management can help

Non aligned

Here at Endorphin, we have no alignment to the big banks and financial institutions, so the advice we provide is always in our client’s best interests. We have the advantage of being able to access a range of products from different providers that can be tailored to our client’s needs.

We also utilise subscriptions to three of the top research providers in Australia to cross reference our research and recommendations.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best wealth management strategies for our clients and have developed a number of systems to manage and track the marketplace. We’ve been able to identify some excellent options for our clients to make the most of our growing global population and the infrastructure to support it.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals and to create a happy and carefree retirement. We want all of our clients to get on with enjoying their life rather than worrying about money.

For an obligation free conversation about your financial future, please contact us on 03 9603 0072 or at advice@endorphinwealth.com.au

Phillip Richards and Robert Rich
Endorphin Wealth Management

Financial Advisor Phillip Richards
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. 
Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Financial Advisor Robert Rich
Robert Rich is a qualified Associate Financial Advisor with over nine years of personal investment experience. 
Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.

 

 

This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.

[1] UN Department of Economic and Social Affairs

[2] PWC – Capital project and infrastructure spending – Outlook to 2025 (https://www.pwc.com/gx/en/capital-projects-infrastructure/publications/cpi-outlook/assets/cpi-outlook-to-2025.pdf)