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. *