November Market Update
There was good news last month, as the local economy continued to strengthen on the back of the reinvigorated resources sector. This solid performance also influenced the RBA’s decision to raise the cash rate to 4.75%. In Europe, economic growth remains mixed. While the German economy continues to outperform expectations, concerns still surround some of the smaller economies, such as Ireland. The latest data from China indicates the economy is still expanding strongly with a pick-up in retail sales but some moderation in growth of industrial production and investment in fixed assets such as infrastructure. And in the US, GDP forward estimates rose by 2%, however doubts still persist over how soon a full recovery will take place. 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.