Investment update for February 2018
In Australia, the economic data remain mixed. Survey results and confidence rose in January, however consumer confidence slipped in February. The Reserve Bank of Australia’s parliamentary testimony reiterated that the next move on interest rates will most likely be up and that the economy is moving in the right direction. Economic news is seen to be more positive in recent months but uncertainty remains in the consumer sector and progress in regards to reducing unemployment and having inflation return to target.
Global markets had heightened risk aversion which prompted financial markets to sell off sharply with selling pressure from rapidly unwinding of investment positions predicated from further declines in historically low volatility levels. This sell off was short lived but markets are likely to remain volatile as it will take a while for investors to fully adjust to higher inflation, more aggressive monetary policy and higher bond yields. Political uncertainty around the globe added to this volatility during the month.
Please view our full investment commentary in the following video brought to you by our advisors – Frontier – for a more in depth analysis of market conditions this month.
We trust you find this information useful in understanding how your AvSuper investment is performing and welcome your feedback on how we can improve the information we provide to you.