From Ben's Desk (January 2019)
Happy New Year to all our valued clients! Whether you are still relaxing on your summer break or back at work, we wish you and your families a happy and prosperous 2019.
There was no let-up in the pace of economic news in December. The US Federal Reserve lifted interest rates 0.25 per cent as expected to a target range of 2.25-2.5 per cent, the fourth hike of the year. The Fed now forecasts two more increases in 2019 instead of three on concerns about weaker global growth. One sign of falling economic demand is the slide in global oil prices. Brent Crude finished the year down 18 per cent to US$54 a barrel.
In Australia, the Federal Budget is expected to return to surplus in 2019-20, earlier than expected. The Budget deficit stood at $1,816 million in the year to November, the lowest in a decade. Corporate Australia is producing record profits, up 1.9 per cent in the September quarter and 13.5 per cent on an annual basis. Unemployment fell to 5.1 per cent in November, the lowest since 2012.
In the lead-up to Christmas, the national average price for unleaded petrol fell 8c a litre to $1.30, 11c cheaper than a year earlier, on the back of lower oil prices. No wonder consumers had spring in their step. The ANZ-Roy Morgan consumer confidence rating rose to 117.8 points amid the annual Christmas spending spree, well above the long-term average of 113. The only fly in the ointment is the falling property market. National house prices fell 4.8 per cent in 2018, according to CoreLogic, with the biggest falls in Sydney and Melbourne.
The January 2019 edition of From Ben’s Desk includes the following articles:
2018 year in review;
Financial rules to live by in 2019;
Small steps add up.
To view this edition, please click on this link.
All the best,
Ben Wieland (Partner & Senior Financial Adviser) & Ben Widdup (Financial Adviser).
"A truly principled and distinct perspective that makes a meaningful difference to our clients' financial future."