What to do in volatile share markets – 3 things to consider.

Recent share market volatility is giving investors a refresher course in what a market sell-off feels like. During a market correction it’s natural for investors to wonder if they should be doing more to protect in a downturn. Please read our latest update below:

What to do in volatile share markets – 3 things to consider (PDF)

Investment Market Update July 2015

Our aim at Aspirations Wealth Group is to keep our clients informed regularly about their portfolio, investments and markets. There is significant change occurring in the world, and since these changes have an impact on Australia, we felt it was prudent to provide a review of each of the key markets which are currently experiencing change.

 

Please click here for our Investment Market Update July 2015 (PDF)

Asset allocation is always important

When putting together your investment strategy, it’s helpful to keep in mind the age old saying that “the whole is greater than the sum of its parts”. Investment portfolios that are invested in a number of asset classes work together to even out performance in both bull and bear markets, taking into account your risk tolerance and time horizon. Please see attached link for more information:

Asset allocation is always important (PDF)

The US Government Shutdown

US Federal Government Shutdown

You may have seen in the news that the US has been unable to reach an agreement on the Federal budget and the US government will be in partial shutdown from 1st of October.

What is a shutdown? Effectively around 800,000 US federal government employees will go on leave without pay until the politicians can stop bickering over who is to blame and fix the problem.

Below we provide our view on the potential impacts to you, the markets and the US economy.

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  • Historically, US government shutdowns have been a non-event for investment markets with the average shutdown lasting around 10 days and the share market falling around 1.4%.
  • The US has to raise its debt ceiling, which is currently around $17 trillion dollars, in order to fund the federal government going forward. They have raised this ceiling 79 times since 1940.
  • The impact on the US economy should only be minimal, as long as a resolution has been implemented within a reasonable time frame. The outlook for the US economy is still good going into 2014. However at some point in the future the US needs to stop borrowing and start reducing government debts.
  • We see any short term market volatility as an opportunity for you to potentially increase exposure to quality growth assets at a lower price.

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We will continue to watch this situation closely and keep you updated. If you have any questions or would like to know more please contact the team at Aspirations.

Investment Market Update July 2013

chart1Global share markets have recovered strongly, until recently. Chart 1 below shows the one year movement in the Australian share market and you will notice the large gains from July 2012 to March 2013. Volatility returned to the Australian share market in the past eight weeks, caused by concerns around weaker Australian economic growth and the falling Australian dollar which has gone from $1.06 to $0.92.

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