Menu

Market Highlights - A look back at August 2017


Australian Economy – With the downward trend in the unemployment rate continuing throughout 2017, the Reserve Bank of Australia once again left rates on hold at 2.5%. It's now been 12 month since the last couple of rate cuts and has been almost 7 years since rates were last lifted (from 4.5% to 4.75%)1.

Global Economy – The US unemployment rate touched back down to 4.3% whilst GDP growth for the June quarter came in above expectations at 3.0%2. Unfortunately for the US, this year's hurricane season is proving to be damaging with Hurricane Harvey alone expected to cost over $80 billion and drive up the price of petrol significantly.

Investment Markets – Australian equities have seen 3 months of unusually benign terrain, with the S&P/ASX200 index stuck just above 5700. The past month was also somewhat flat for US equities, though Chinese equities bounced up over 2% to be up almost 10% over the past 3 months3.

Outlook – A US bond rally in August might be a signal for an impending market correction. With equity markets losing faith in the Trump agenda, it might only take a one or two negative surprises for the current bull market to run out of steam.

S&P/ASX 200 – 12 months to 31 August 2017

Source: Core Equity Services

Footnotes: 1. Australian Bureau of Statistics; 2. US Dept of Labor; 3. Bloomberg data.

 LBW Financial Services Pty Limited trading as LBW Wealth Management is a Corporate Authorised Representative of Wealthsure Financial Services Pty Limited (AFSL Lic. No. 326450)

This article has been prepared by LBW's investment committee based on its understanding of current regulatory requirements and laws. It is not considered advice and provides general information pertaining to our ideology surrounding future asset allocation strategies. It does not take into account each client's individual objectives, financial situation or needs. If you would like to know how LBW's understanding of the current environment impacts on your portfolio please contact a Financial Adviser and to discuss your options or before making an investment decisions. 

The information contained within the website is of a general nature only. Whilst every care has been taken to ensure the accuracy of the material, WealthSure Financial Services Pty Ltd will not bear responsibility or liability for any action taken by any person, persons or organisation on the purported basis of information contained herein. Without limiting the generality of the foregoing, no person, persons or organisation should invest monies or take action on reliance of the material contained herein but instead should satisfy themselves independently of the appropriateness of such action. Our Australian Financial Services Licence is provided by WealthSure Financial Services Pty Ltd (AFSL No: 326450) the WealthSure AFSL applies to financial products only. Please note Finance, Mortgage Broking, General Insurance, Legal Document Drafting, Taxation, Real Estate & Business Coaching are not considered to be financial products.