27 NovChristmas Market Update

Republican presidential candidate Donald Trump speaks to supporters as he takes the stage for a campaign event in Dallas, Monday, Sept. 14, 2015. (AP Photo/LM Otero)At the beginning of November the RBA once again decided to leave interest rates unchanged. Of course, they’re still sitting at the same historically low rates as the past few months, so there are still plenty of opportunities to take advantage of low interest rates available from almost every lender.

November also saw Donald Trump’s victory in the United States Presidential election. Initially, when the news was announced, global markets dropped in panic as people wondered how the election could potentially affect the rest of the world.  Social media sites and newspapers alike speculated about the potential for fear and panic to drive the markets into a volatile frenzy.

However, it didn’t take long for the markets to bounce back, with the New York stock exchange closing at record highs the following day.

Despite the rapid rebound in the market, many Australians are still concerned about the potential impact to our own local markets. After all, Australian and Asian markets are particularly vulnerable to any impact in trade policies coming out of the United States.

While global market fluctuations hit the news headlines right around the country, it’s worth noting that Australian markets were much less volatile overall. The Aussie dollar has only made minor movements over the last month, trading at 75.84 USD on the 17th October and still trading at 75.62 on the 15th November.

Likewise, interest rates have remained unchanged for several months now, with the majority of economists indicating that they don’t anticipate the RBA to make any more changes this year.

Meanwhile, data released by CoreLogic indicates that our property markets are still continuing to grow. Statistics show that home values in the 12 months to September 2016 have continued to increase in most capital cities across Australia. Melbourne, Canberra and Hobart showed a real change of more than 7%, while Sydney’s annual growth was at 8.8% and Adelaide showed growth of 5.2% for the year.

It can be tempting to react to the uncertainty of overseas markets, especially when they’re always prominent on our local news headlines. However, before you make any financial decisions, always take the time to research what’s happening right here at home.  You’ll be in a stronger position to make informed decisions that could be the key to achieving financial stability.

In this issue, some of our key Nieuvision staff members have provided some insightful tips and articles for your reading pleasure. We hope you enjoy them.

Rick Nieuwenhoven
CEO
e: rick@nieuvision.com.au

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