After a somewhat turbulent quarter, global and domestic share markets performed superbly over the last quarter. Positive numbers in the US Asia and Europe both in GDP and employment had positive impacts on markets worldwide. Locally, the market was volatile but huge banking profits, positive signs in the mining sector and reforms to stabilise the housing market all resulted in an excellent quarter.
It is important to catch up soon however; as it is my opinion that the Aussie market is fully valued. In fact, I thought when the All Ordinaries Index hit 5800, it wouldn’t get much higher: It has now hit 5950. It is my belief that there is more value in other sectors such as global infrastructure and emerging markets in Asia in particular India. It is worthwhile discussing this strategy. With No value in fixed interest or cash, these sectors must be investigated.
The message here is clear; low interest rates are here to stay for at least for the next couple of years.
If you are paying 4% or more on a home loan, you are paying too much and I would encourage you to contact our office to let us give you the best rate in the market place