Care Quarterly Newsletter

CARE Quarterly Newsletter – March 2017

Highlights:

  • Financial markets experienced a stronger quarter.
  • The US tax reform process is likely to be full of drama and may be stretched out.
  • Tax cuts and increased spending whilst positive for share prices have already been reflected to some degree since Mr Trump was elected President.
  • In Australia, all eyes continued to be on the housing market where prices have increased considerably over the last year.
  • APRA has implemented additional measures to slow the growth of interest only loans and loans with high loan to valuation ratios.
  • The Australian consumer has cooled with retail sales growth only 2.7% higher over the year.
  • Low wage growth and the reluctance to hire by companies is limiting the consumers ability to spend.

CARE-Quarterly-Newsletter-Mar-2017.pdf

CARE Quarterly Newsletter – January 2017

Highlights:

  • US Politics dominated the investment climate in the last quarter of 2016.
  • President Trump’s “Making America Great Again” policy has boosted market confidence in the short term. Although scant in detail easier fiscal policy should be positive for the US dollar.
  • Australian growth remains solid but unspectacular. The recent rise in commodity prices will boost Australia’s income over the next year.
  • Australian consumers remain cautious. The rate of spending in the economy is inconsistent and well below trend. While business conditions overall are above average, the broadening across industries seen earlier in the year has not endured.
  • The CARE investment philosophy is to maintain suitable exposure in fairly priced assets such as bonds, shares and property for the long term.
  • The Investment Committee prefers interest rate investments that have a very low probability of capital loss.

CARE-Quarterly-Newsletter-Jan-2017.pdf

CARE Quarterly Newsletter – October 2016

Highlights:

  • The world’s major economies continue to stumble along, barely able to reach trend growth – where unemployment and inflation remain stable.
  • The US Federal Reserve will be measured in its interest rate rises so as not to cause a rapid appreciated of the USD.
  • The Australian economy continues to grow steadily aided by easy policy, continued buoyancy in the housing market and a resurgence in commodity prices aiding foreign income.
  • Australian consumers remain cautious. The rate of spending in the economy is inconsistent and well below trend. While business conditions overall are above average, the broadening across industries seen earlier in the year has not endured.
  • The CARE investment philosophy is to maintain suitable exposure in fairly priced assets such as bonds, shares and property for the long term.
  • The Investment Committee prefers interest rate investments that have a very low probability of capital loss.
  • The CARE Conservative, Moderate, Balanced, Growth and High Growth portfolios were rebalanced during the quarter as Australian share exposure rose in line with the market’s increase. The funds were invested into cash, global and emerging market share.

CARE-Quarterly-Newsletter-October-2016.pdf

CARE Quarterly Newsletter – June 2016

Highlights:

  • Britain’s surprise referendum vote to leave the European Union has unnerved the US Federal Reserve leading to no change in interest rates
  • Australian interest rates to move lower
  • Global share markets stronger following the fall in short and long term interest rates

CARE-Quarterly-Newsletter-June-2016.pdf