Expect slower medium-term returns

Expect slower medium-term returns Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. At least it’s still better than sub 1% bank deposit returns. The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets …

Econosights: The outlook for the global economy

Econosights: The outlook for the global economy   Key points Our forecasts anticipate a solid rebound in global GDP growth over 2H2020 across developed economies from re-openings after strict national lockdowns, better management of COVID-19 cases and continued policy support. A cyclical upswing is evident in US indicators of manufacturing, industrial production and housing. Vaccine developments provide upside and downside risks to our views. Our current growth forecasts assume that a vaccine is available by …

What do July’s strong building approval numbers say about Australia’s growth prospects? | AMP Capital

What do July’s strong building approval numbers say about Australia’s growth prospects? Building approvals in Australia surged by 12% in July, up 6.3% compared to a year ago. This was a much stronger result than consensus expectations of a fall in the order of 2%, and follows a run of better than anticipated numbers since April’s low point. As an important leading indicator of national construction activity, and with implications for the lending sector as …

Give yourself a new financial year check-up

Give yourself a new financial year check-up Start the new financial year in the best way possible by giving your finances the once-over. Financial year 2019-20 is now behind us and there’s nothing like closing a chapter to inspire thoughts of a fresh start. But global challenges persist: Australia is officially in a recession while also bracing for a post-JobKeeper economy in September. While it’s impossible to anticipate future changes to the global economy, there’s …

2019-20 saw poor returns – but it could have been much worse | AMP Capital

2019-20 saw poor returns – but it could have been much worse Key points 2019-20 saw a rough ride for investors as coronavirus hit resulting in small losses for well diversified investors. Key lessons for investors from the last financial year were to: maintain a well-diversified portfolio; timing market moves is hard; beware the crowd; turn down the noise; and don’t fight the Fed. With coronavirus risks still high, investment markets may see more short-term …

After the Bell: daily market update, July 1 | AMP Capital

ECONOMICS & MARKETS After the Bell: daily market update, July 1 01 Jul, 2020 The first day of the financial year was a good one for the ASX, but some fresh data continues to show the scale of the damage caused by COVID-19. Our senior economist, Diana Mousina, explains. Important information While every care has been taken in the preparation of this video, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and …

The US presidential election – implications for investors | AMP Capital

The US presidential election – implications for investors Key points The run up to the US election on 3rd November has the potential to see increased share market volatility if it looks increasingly likely Biden will win and if Trump ramps up tensions with China (and maybe Europe) in response. However, this is likely to be short lived as there is no reason to expect a weaker economy and hence share market under a Biden …

A new financial year with some new super rules | AMP Capital

A new financial year with some new super rules The start of a new financial year always brings with it new rules for super funds. Sometimes there are lots of changes, which are wide-reaching, and in other years there’s just a few. For the 2020/21 financial year, the two main changes are: the abolition of the work test for anyone aged 66 and 67 years old who wish to make personal non-concessional contributions; and an …

JUN 2020 – Shane Oliver’s mid-year progress report on markets and the economy | AMP Capital

WEBINARS JUN 2020 – Shane Oliver’s mid-year progress report on markets and the economy 24 Jun, 2020 2020 wasn’t the year anyone was expecting, but in welcome news for some, we’re already about six months of the way through it. In this webinar, our Chief Economist and Head of Investment Strategy, Shane Oliver, shares his views on global markets as we learn how to live with COVID-19. Important information While every care has been taken …

Essential checklist for the end of financial year

Essential checklist for the end of financial year The end of financial year on 30 June is a good time to take stock and get your finances in order. This is an end of financial year like no other. Being prepared, reviewing your super contributions and submitting your return on time are good policies every year, but the shadow of COVID-19 (coronavirus) means many of us face unexpected pressures in a changing economic environment. Many …