From Ben's Desk (August 2018)
As August rolls around and the weather begins to warm up, our thoughts are with the nation’s farmers. Many are battling a prolonged drought and wishing for rain.
On the domestic front, the corporate earnings season is approaching at a time when Australian shares are trading at 10-year highs. The lower Australian dollar, down 5 per cent this year to US74c in late July, should help boost companies with offshore earnings.
Inflation remains benign with an annual growth rate of 2.1 per cent in the June quarter, up from 1.9 per cent in March. Prices of petrol, health and tobacco rose strongly while prices fell for domestic travel, cars and vegetables. The unemployment rate was unchanged at 5.4 per cent in June but wage rises barely kept pace with inflation. Consumers felt the pressure in their hip pocket, with the weekly ANZ-Roy Morgan consumer confidence rating dipping 2.1 per cent to 118.9 in late July.
Falling house prices may also be weighing on sentiment, with the CoreLogic national Home Value Index falling 0.8 per cent in the year to June. Home prices fell in Sydney, Darwin and Perth, dragging down the national average.
In the US, June quarter corporate earnings reported so far have exceeded expectations, up 4.1 per cent on an annual basis despite ongoing global trade tensions. The IMF left its global growth forecast unchanged at 3.9 per cent for 2018 and 2019 which, if realised, would be the fastest growth in 7 years.
The August 2018 edition of From Ben’s Desk includes the following articles:
- Fired up for financial independence
- Making the most of a falling Aussie dollar
- Is your money personality set in stone?
To view this edition, please click on this link.
All the best,
Ben Wieland.
"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."