Now that we are affiliated with AMP Capital, we have access to their resources to help us provide investment planning services from our Perth area office. One of those resources is Shane Oliver, who is AMP Capital’s Chief Economist and Head of Investment Strategy. In a recent blog post and video, Mr Oliver addressed the performance of the equities market in the fourth quarter. We would like to share some of his points with you here.
Consumers Benefit from Low Oil Prices
According to Mr Oliver, oil prices have decreased approximately 50% since the middle of 2014. For countries who import more oil than they export, Mr Oliver sees this as good news because the prices for petrol are lower. *
Inflation Figures Low for September
Mr Oliver feels that low inflation figures in the September report, combined with the recent tightening of financial standards for property investors and owner-occupiers by the “big four” banks, may result in yet another lowering of the RBA cash interest rate for 2016. *
Gains in Equity Market
According to Mr Oliver, October can be a “turning point” in which equity markets turn from “weakness” to strength. Mr Oliver was satisfied with the performance for October and predicts what he calls a “further rally in markets” to continue into 2016 as part of the ongoing “cyclical bull market in shares.” He mentioned that a “short term pause” during November was possible, but that “year end seasonal strength” would prevail.
Call an Investment Planning Adviser at Approved Financial Planners
Remember that we can’t give any individual advice without an individual consult due to ASIC regulations. However, we would like to remind you that we offer a full service solution to all of your investment planning needs in our Perth area office. We will be happy to provide you with an obligation-free, personal consult. Call Approved Financial Planners today: 08 6462 0888.
*Shane Oliver, AMP Capital. Equity markets rally in the final quarter. 06 November 2015.