I have attached today a rare thing - an article about the outlook for Adelaide residential property (as opposed to east coast or even west coast outlooks). It is an article from Adelaide Now drawing on BIS Shrapnel's forecast.
Despite a structurally stronger economy, the combination of higher interest rates and a rising currency has seen Australian shares underperform other international markets over the past two years. Matt Sherwood, Perpetual’s Head of Investment Market Research examines market recoveries and finds that multi-year side trending markets in Australia are not unusual and then discusses what is required for the Australian market to break out of this trading range.
There seems to be no end in sight to the ongoing sovereign debt concerns plaguing Europe and in particular Greece.
This combined with weak economic data out of the US has weighed heavily on investors minds this month.
The signs that economic expansion in Europe is slowing has also affected us here in Australia with the RBA citing this as one of the reasons for leaving interest rates as they are.
Apart from weather-affected sectors including mining, energy and agriculture, the Australian economy was pretty solid over the quarter. As a long-term investor, it’s important to keep in mind that we can probably expect to see more volatility as global markets work towards a sustained recovery.
If you’d like to discuss anything in this report please give my office a call. Steve Greatrex 8274 3744