Our Financial Advisor team love working with our clients and at a high level some want to understand the impact in our economy both domestic and abroad on investment markets. With geopolitical tension always in the backdrop which we have seen this last week, markets don’t always act the way that the experts expect.
In September we saw:
- The Reserve Bank (RBA) chose not to lift rates at the September meeting, Philip Lowe’s last meeting as governor, although he noted the possibility of further tightening should inflation remain high.
- Although we have had some impressive global returns this last 6 months, global equity markets declined 4 per cent in September, taking the September quarter loss to 0.4 per cent and the 12 months to 17% in AUD terms. For the quarter, the bank sector managed to rise 4.4 per cent while energy was up more than 11 per cent and insurance 1 per cent. However, REITs, materials and IT were all softer.
- The Australian equity market lost 2.8 per cent in the month, and -0.8 per cent for the quarter. Year to date the ASX 200 is at 13.46% with the quarter returns for bank sector managing to rise 4.4 per cent while energy was up more than 11 per cent. However, REITs, materials and IT were all softer.
- Global and Australian bond yields surged in September on the back of a better-than-expected economy at this point of the rate hike cycle. It is this part of the market that we should all be watching as we move into October and November.
Key dates to look out for over the next month domestically include Australian Unemployment and jobs data mid-October and inflation numbers late October. Read the full Monthly Market Report September 2023.
As we discuss with our clients, having a broad understanding of markets can be interesting but should never sway short term investment outlooks, and picking the lows and highs of the market are fraught with danger. A well-diversified portfolio can take the guess work out of the market and speaking with your Financial Advisor on having an appropriate investment risk strategy is the first step.
To understand more on this please contact a Boutique Financial Advisor for a chat 08 9381 8779 or visit our website & send us your details.