October Market Update
This month saw a fall in consumer confidence and lower manufacturing indices in the US. This economic data and concerns of deflation led to increased speculation the Federal Reserve (Fed) will inject more liquidity into the economy. In Europe, sovereign debt concerns resurfaced with ratings agency Moody’s, releasing a fresh round of ratings downgrades to banks in Ireland, Portugal and Spain. In contrast to Europe and the US, the latest Chinese economic indicators show the economy is still expanding quickly. This is despite a modest easing in the pace of growth in August. And locally, September was a reasonable month for the Australian sharemarket with key benchmark indices reaching six month highs. 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.