Unexpectedly high global inflation, along with a re-evaluation of Federal Reserve policies and an increase in bond yields, led to a notable decline in equity markets in April.

Global equities continued their upward trajectory, buoyed by robust economic indicators and earnings, with a 3% rise in March and a quarterly gain of 14.1%,the strongest since 2013.

Economic Snapshot: Markets rise as inflation eases

Australian equities rose further in January with a 1.2% lift, taking the 3-month advance to 14 %. Banks continued to lead the charge, rising 5.3% with insurance up 5.9% and energy 5.2%.

After lagging markets for much of the year, Australian stocks rebounded sharply in December, rising 7.3% to close at record levels. Interest rates and inflation remain the key data points in focus.

Global equities rose by 9.4% in November, the largest monthly gain since the 2020 COVID recovery, driven by signs of economic moderation in the US and disinflation in developed markets.

Global equity markets dropped a further 2.9% in October taking the year-to-date return to 8.2%. Bond yields continued to climb, undermining valuations across a range of assets, while the Israel-Hamas conflict added to uncertainty and risk aversion.

Investor sentiment turned in September with inflation data suggesting there were risks of further interest rate hikes ahead to cool ongoing consumer price pressures.

Inflation slowed to 4.9% in July, down from 5.4% in June, which cemented expectations of a pause in interest rates.

Global equities rose 2.1% in the month, with a 20% year-to-date gain in AUD terms. Value, small caps, and cyclical-stocks led the rally.

Global equity markets rose 3.1% in June, with a 7.6% return for the quarter. The rally included growth stocks, the IT sector, banks, retailers, small caps, REITs, and materials.

We are witnessing a significant shift in generational wealth accumulation and concerns that the next generation could be the first since Federation to be worse off than their parents.

The RBA raised the cash rate by 25 basis points to 4.1% in early June, the second increase since April.

In April, global developed equities saw a slight positive tone, rising by 1.8%, with Europe ex-UK being the standout performer.

Global equity markets rose in March after a tough February.

Global investors faced a reality check in February, reflecting a more cautious view on upcoming central bank decisions.

Financial markets started the year on an upbeat note, with rallies across the board in January. However, the economic data is mixed.

The big question for 2023 is how much damage has been done to economic growth by the higher interest rates designed to tame inflation?

Markets were in a more buoyant mood in November, hoping the worst of the interest rate hikes may be over.

Financial markets respite from previous months on hopes that central banks may slow the pace of interest rate increases

Ongoing strength in the US economy, including higher than expected inflation, led the Federal Reserve to adopt a more aggressive stance on interest rates.

The rally enjoyed by financial markets in July came to an abrupt halt in August, with the key driver the outlook for US interest rates.

After the turmoil of previous months, markets took a more positive tone in July with both bonds and equities posting solid gains.

When inflation and interest rate are impacting all asset classes at once, it’s difficult to remember that it’s normal for investment returns to vary greatly from year to year and still grow over the long-term.

A combination of strong growth, abundant liquidity, supply chain blockages, and the Ukraine war triggered the biggest resurgence of inflation since the early 1980’s.

May was a volatile month for global financial markets as investors continued to grapple with the array of risks confronting them.

April was a harsh month for financial markets. High inflation, aggressive rhetoric from the US Federal Reserve Bank, the Ukraine war and COVID lockdowns in China, all combined to sour investor sentiment.

In a turbulent month for global markets, Australia’s geographic distance from Ukraine, combined with our role as a commodity exporter, helped our equity market to outperform and the A$/US$ to rally.

Despite the challenges and uncertainties of the pandemic we’ve experienced a once in a generation property boom, fuelled by low interest rates and migration to smaller capital cities.

Changes to superannuation contributions bring new opportunities

Markets React to Russian Invasion of Ukraine

Despite ongoing COVID waves, equities had another stellar year.

Markets continue to grapple with the good news of recovering economies, the bad news of rising inflation risks and the ever-present threat of COVID-19.

The potential impact of COVID-19 on economic activity continues to be a concern for markets, but inflation has also become an issue.

Being stuck at home in endless COVID-19 lockdowns has given many people time to think about their financial future. If you are engaging with your Super for the first time in a while, here are 3 things to consider to ensure you make the most if it.

August is reporting season and, in addition to finding out how companies are performing in these challenging times, investors may also find themselves on the receiving end of an unexpected special dividend or an off-market share buy-back.

The post-COVID housing market recovery in Australia has certainly exceeded expectations, with property prices in Melbourne up 6.1%, Brisbane 6.3% and Adelaide 4.9% so far in 2021. As prices rise, more retirees are considering downsizing their home. In turn, taking advantage of tax and superannuation incentives to maintain the lifestyle they desire in retirement and protect their wealth.

GameStop made headlines for all the wrong reasons but short selling can be a savvy investment strategy. It has been used by prudent fund managers for years and there is a place for it in balanced portfolio management.

Budget 2020-21 is firmly billed as a recovery plan, to move Australia from crisis response towards rebuilding the economy following the once-in-a-century shock caused by the COVID-19 pandemic.

It's been a turbulent ride on global markets since the onset of COVID-19, but FMD portfolios are weathering the storm and are well-placed for the future. Watch this update from the FMD Investment Committee for all the latest details.

We continue to receive fantastic feedback about our largest-ever Annual Client Briefing held at the Park Hyatt in Melbourne in December 2019 where we welcomed over 400 guests. One of the things ...

Summary January was a dramatic month for the world economy and financial markets, starting with hostilities between the US and Iran and ending with fears about the new coronavirus (2019-nCoV) ...

2018-19 was a tough year for Australia’s major banks who faced margin squeeze from lower interest rates, fierce competition in mortgages and customer dissatisfaction in the wake of the ...

Summary December closed out 2019 on a positive note with equities, bonds and commodities all rallying as key economic data steadied and the US and China agreed to sign the Phase ...

Summary November was a good month for equity markets as the broad risk-on theme continued. Both the local and US equity markets reached new highs. In contrast, the performance of ...

The Australia Talks National Survey (fielded in July 2019) shed light on what Australians are most worried about. When presented with a list of 27 worry factors ranging from money to survival ...

The Reserve Bank of Australia and the Government may be lamenting the fact that lower interest rates and personal tax cuts haven’t had the desired effect on consumer spending, ...

Summary After starting October on a cautious note, markets became a little more optimistic about global economic conditions as the month progressed. News that the US and China would sign ...

Summary September’s market action was in clear contrast to the previous month. August’s concerns about global growth, trade wars and geopolitics gave way to a somewhat more optimistic ...

In July 2017, the government introduced new rules that make it imperative for higher income earners to pay close attention to their annual super contributions or risk retiring without enough money ...

Summary August was a turbulent month for global financial markets with heightening concerns in relation to the ongoing trade dispute between the US and China, and about how much the ...

The Summary July was all about central banks cutting interest rates to support growth. This spurred equity markets to new highs in both Australia and the US. The Reserve Bank ...

Super regulations are always changing - there have been 43 legislative and regulatory changes in Self-Managed Super alone in the last five years! (1) While super may still be the most tax-effective ...

The Summary May was not a good month for global equity markets. The prime source of concern was the escalating trade dispute between the US and China, leading markets to ...

The Summary With the Federal Election victory now confirmed for the Liberal–National coalition, we no longer need to plan around changes to franking credits, negative gearing, reductions in CGT ...

The Summary In March, the world’s financial markets continued coming to grips with the implications of the sudden slowdown in global growth in recent months. Data for the manufacturing ...

Negative gearing to be limited to newly built properties from 1 January 2020 if Labor wins the election. What this could mean for investors and the property market?

Will this budget result in a comeback for the Government in time for the “sometime in May” federal election? Mike Reynolds demystifies the 2019 Federal Budget

The Summary February saw further signs of slowing global growth, muted inflation and ongoing geopolitical risks. Key policymakers have responded with more of the “patience and flexibility” message they have ...

It’s always hard to take time away from the office and our clients, but once again we were reminded of the benefits of bringing our national team together to share knowledge and hone our skills at this year’s annual adviser conference in Melbourne recently.

Proposed changes to franking credits in SMSFs are on the horizon if Labor is elected in May. There could be significant impacts for retirees with an SMSF who are wholly in the pension phase. Financial adviser, Jason Calleja, explains the potential impact and what you can do to protect your wealth if the proposed changes come into effect.

The Summary After a very difficult month in December, markets bounced back strongly in January as fears about US monetary policy and a potential recession were alleviated by a mix ...

The ‘January effect’ is a well-known phenomenon among economists and psychologists alike. Regardless of market realities, consumer optimism and share prices often see a temporary boost and so does our ...

The Summary 2018 was a year in which global investors significantly reduced their appetite for risk in the face of slower than expected growth, a tightening in US monetary policy, and ...

The Summary Speculation about US monetary policy was the key factor driving markets in November. Comments from senior Federal Reserve officials led the markets to think the Fed is close ...

The Summary October saw the most significant pull-back in global equity markets since 2015. A wide range of issues contributed to this, including the US/China “trade war”, the Italy/EU ...

The Summary Following a strong rally in August, September proved to be a mixed month for world financial markets, with a modest retracement in a number of equity markets, including ...

The Summary It’s been a decade since the peak of the Global Financial Crisis and the legacy remains clear. While equity markets have had some outstanding returns since that ...

Purchasing a home is one of life’s greatest milestones, but it can puts the brakes on your wealth accumulation. What if you could build wealth and still pay down your home loan?

The Royal Commission continues to expose the poor conduct occurring in the banking and finance industry and we’re glad the Commission is giving a voice to those impacted. Though ...