Mortgage BrokingNews RBA Rate Outlook By Mortgage Broking Firm in Perth

RBA Rate Outlook for 2016

We offer mortgage broking to clients in the Perth area and we feel it would be helpful to discuss where mortgage rates could be going in 2016. While we have been a trusted name with more than 70 years of experience in providing financial advice in the Perth area, our affiliation with AMP Capital has brought us one extremely trusted resource: Dr Shane Oliver.

Dr Oliver is the Head of Investment Strategy and Economics at AMP Capital. He is also their Chief Economist. Recently, Dr Oliver wrote an article on the AMP Capital company blog called, “2016 – a list of lists regarding the macro investment outlook.” We are covering various aspects of the piece on this blog.*

While the blog covers mostly investment strategy, it also has some information that is relevant to mortgage broking professionals and those who want to add investment property to their portfolios: Dr Oliver’s speculation and forecast about the RBA cash interest rates.*

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Financial PlannersNews Investment Market Review By Financial Planning Advisers

Investment Market Review for 2015 and Outlook for 2016

The financial planning advisers in our Perth office would like to provide a quick review of 2015 and what it may mean to you in 2016. We are going to provide some information for you courtesy of Dr Shane Oliver, who is the Chief Economist and Head of Investment Strategy and Economics of our parent company, AMP Capital.

On 21 January 2016, Dr Oliver wrote an article on the AMP Capital blog called, “2016 – A list of lists regarding the macro investment outlook.” The article covered many facets of the economy and how they performed last year. We are going to give you a look at some of the highlights.*

2015: What Happened?

2015 provided mixed returns for investors. Monetary conditions “remained easy” while the global economy saw mild growth. However, global markets did suffer from a variety of fears, such as dropping commodity prices, China being in the forefront of a possible emerging market crisis, the first interest rate hike in the US over seven years and Australia continuing a “soft” pattern of growth.*

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Financial PlannersNews Financial Planning January Sharemarket Drop

What Happened with the January Sharemarket Drop?

2016 greeted investment planning professionals in Perth and across Australia with bad news as the global sharemarket dropped sharply on the first trading day. Chinese shares were down around 7%, European shares lost around 3% and US shares dropped 2.7% before rallying to a loss of 1.5% by the end of the trading day.*

So, what happened? Shane Oliver, Head of the Investment Strategy Team and Chief Economist for AMP Capital, addressed it in a piece on the AMP Capital blog called “Rough start – What’s happened in markets?”*

According to Mr Oliver, market volatility is being driven by insecurity about Chinese growth potential, increased tensions between Iran and Saudi Arabia and manufacturing data from the US resulting in their drop in the Institute for Supply Management (ISM) Manufacturing Conditions Index for December.*

Mr Oliver’s Food for Thought

Mr Oliver reminded investors to consider and “keep in mind.” Here is the condensed version.*

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Investment PlanningNews Back To Baiscs Investment Planning Strategy

Investment Planning: What a “Back to Basics” Investment Strategy Could Mean for You

Debbie Alliston is the Head of Multi-Asset Portfolio Management for our parent company, AMP Capital. Her leadership is one of the many investment planning resources provided to us by AMP Capital.

In December 2015, Ms Alliston contributed an article to the AMP Capital blog called “Is it time to go back to basics?” We would like to provide you with some of the information from that article.*

Cash interest rates are low, not only in Australia but around the world. US rates are rising but the projected growth is slow. Consequently, investors may wonder how to make money in the financial markets. Bond yields are low, as are the yields in other asset classes.*

When the numbers for 2015 come in, it is expected that the equity markets will show positive performance for four consecutive years. However, the low-growth environment in financial markets has many investors unsure of future growth in the equity markets. Australian equities have produced negative earnings growth for the last three years. Ms Alliston doesn’t see it turning around until at least 2017.*

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Investment PlanningNews Too Much Internet For Investment Planning

Does Your Investment Planning Suffer from Too Much Internet?

At Approved Financial Planners, we have more than 40 years combined experience in providing investment planning help to clients in the Perth area. Now that we are working with AMP Capital, we also have their wealth of knowledge backing us in our efforts to help you maximise your investments.

Recently the AMP Capital Chief Economist and Head of Investment Strategy and Economics, Dr Shane Oliver, wrote about investment planning in the Internet age in his column, “Oliver’s Insights.” According to Dr Oliver, the more exposure consumers receive to information about the performance of their investments, the greater the risk of disappointment. This disappointment can cause consumers to make what Dr Oliver refers to as “poor short term investment decisions.” *

According to Dr Oliver, this risk is being “accentuated” by greater access to information about how investments are performing short term. This access often involves what Dr Oliver refers to as a “worry list…via traditional media” and apps that bring this information straight into our phones. *

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Mortgage BrokingNews Mortgage Broking in Perth

Mortgage Broking in Perth: Tips on Choosing a Home Loan

You may not know it, but mortgage broking is one of the many services we offer in our Perth area office. With the backing of AMP and AMP Capital, we are well-positioned to offer you a full menu of financial services. We would like to provide some information for you from our parent company AMP concerning how to choose the “right” home loan. *

Remember that we are prohibited by law from giving advice on this page. Financial advice must be obtained with an individual consult. But we can provide the basics of choosing a home loan for you. We hope you enjoy it.

AMP advocates thinking about these three questions in the early stages:

What kind of property do I want?
How much can I borrow?
What other benefits would I like to have from my loan?

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Financial PlannersNews Emerging Markets For Financial Planners in Perth

Financial Advisors in Perth: Do Emerging Markets Present Opportunities or Threats?

The financial advisors for our clients in the Perth area would like to discuss emerging markets with you. Recently, our parent company AMP Capital covered this on their website. We would like to provide you with some highlights from the article, written by AMP Capital Investment Strategist Callum Thomas. *

According to Mr Thomas, investor sentiment in emerging markets is deteriorating, due to somewhat softer growth in those markets. Mr Thomas questions whether or not those fears are warranted. *

A recent survey of AMP Capital fund managers determined that 75% of them perceive the possibility of an emerging market debt crisis or a recession in China to be the tail risk that causes them the most concern. *

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Financial PlannersNews Financial Planning - Unlisted Commercial Property

Financial Planning Help in Perth: Is Unlisted Commercial Property an Attractive Investment?

If you are seeking financial planning help in Perth, you may or may not be aware of Australian unlisted commercial property as an investment. Recently, Shane Oliver, the Chief Economist and Head of Investment Strategy and Economics with our parent company, AMP Capital, addressed unlisted commercial property in his column, “Oliver’s Insights.” *

Mr Oliver mentioned that unlisted commercial property has been generating returns of 9.5-10.5% per annum over the last six years, since the end of the Global Financial Crisis (GFC). According to Mr Oliver, this is because yields have fallen due to investors in search of income bearing investments. *

According to Mr Oliver, when yields fall .25%, capital gains rise 4%. He goes on to explain that property prices rise relative to rents in what he calls a “falling yield environment.” This provides capital gains for those who invest in property. Mr Oliver goes on to note that Australian Real Estate Investment Trusts, or A-REITs, have produced capital gains of “around 13% PA over the last six years.” *

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Investment PlanningNews Real Estate as a Long Term Investment

Financial Planning in Perth: Our View of Real Estate as a Long Term Investment

We offer a full slate of financial planning services in our Perth area office. Real estate is one of many investment platforms for which we can offer assistance. Since we are affiliated with AMP Capital, we can now lean on their resources to provide you with the best in service and advice. While we can’t provide any individual advice without an individual consult, we would like to forward some information here.

Recently, on the AMP Capital blog, AMP Capital Head of Property Investment Strategy and Research Michael Kingcott wrote a piece on real estate as a long term investment. We would like to provide you with some of the highlights.

Real Estate May Outperform Equities and Bonds

According to Mr Kingcott, volatility in the capital market and “lukewarm economic momentum” is causing a “low growth environment” for equities and bonds. He feels that real estate represents a “good value compared to” equities and bonds. *

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Investment PlanningNews Perth Investment Planning - Equity Market

Investment Planning: Equity Markets Perform Stronger in Fourth Quarter

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. *

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