Wealth eNews from David Love
Market update as at 30 November 2011
Australian economic indicators released during the quarter were somewhat mixed. Our jobless rate rose to a seasonally adjusted 5.3% in November. However, retail sales and GDP both increased and inflation remained well under control.
On 1 November and again on 6 December, the Reserve Bank lowered the cash rate by 0.25% - it now stands at 4.25%. The RBA observed that there has been a moderation in the pace of global growth. Furthermore, sovereign credit and banking problems in Europe continue to weigh on economic activity.
During the three months ended 30 November 2011 the Australian stock market, as measured by the S&P/ASX300 Accumulation Index, fell by 3.0%. Over the past year the Australian stock market has fallen by 6.3%.
Economic indicators released during the quarter in the US were improved. Consumer confidence increased sharply in November and the unemployment rate fell to 8.6%, its lowest rate since March 2009.
During the November quarter the Australian dollar depreciated against the currencies of most of our major trading partners - the US dollar (-4.3%), the UK Pound (-0.9%) and the Japanese Yen (-3.0%). However, the Australian dollar appreciated by 2.5% against the Euro during the quarter.
When expressed in Australian dollars the MSCI World Accumulation Index increased by 2.7% over the quarter, resulting in a decrease for the full year of 4.8%.
Australian listed property trusts, as measured by the S&P/ASX300 A-REIT Index gained 1.7% over the quarter, resulting in a gain for the full year of 2.2%.
Global listed property trusts fell during the quarter by 4.2%, as measured by the UBS Global Real Estate Investors Index Total Returns Hedged (in $A). However, over the past year this sector has risen by 5.5%.
Seasons Greetings
Wishing you and your family a wonderful festive season and every happiness in 2012.
Please Note: Our office will be closed from Wednesday 21 December 2011 and will reopen on Monday 16 January 2012.
As always, please do not hesitate to contact me if you have ay questions or concerns about your particular situation.
David Love is an Authorised Representative of Capstone Financial Planning Pty Ltd
ABN 24 03 733 969, holder of Australian Financial Services Licence No: 223135
The information in this newsletter is of a general nature only. It does not constitute financial or taxation
advice. This information does not take into account your objectives, needs and circumstances.
We recommend you obtain investment and taxation advice specific to your investment objectives, financial situation and particular
needs before making any investment decision or acting on any of the information contained in this document.
