News

Global Market Review - June Financial Year 2017 US Stocks hit new highs in June. Central Bank language from both the US Federal Reserve and the European Central Bank brought caution to markets. The US Fed raised interest rates a second time, leaving overnight yields at 1-1.25%.

China has finally made it past the bouncers and granted entry to an exclusive club. The club’s ‘pass’ literally means investors have to hand over hard earned dollars.

This End of Financial Year is even more important to a vast number of Australians.

Have you ever wondered why stocks keep heading north, and bond yields keep falling? The laws of Economics and Finance usually suggest when stock markets are at all time highs (as they are now), that the economy is in expansion; ie it is doing really well. This means unemployment should be at lows, and inflation is probably strong. It also suggests that interest rates are probably high in response to those two measures. But interest rates aren't high... Instead, interest rates are also at all-time lows, or negative in some examples (Switzerland, Europe, Japan).

It's that time of year in Australia when everyone gets a little manic. It's not just to do with the impending school holidays and figuring out babysitting schedules, rather it's the last chance to get one's 'house in order'. June 30 represents the End of the Financial Year (EOFY), and in other jurisdictions, it equates to a half year or quarter end. Usual things that happen this time of year include investors taking stock of what is in their portfolio. Some transactions have made good profits, and there are others an investor would prefer not to own. So selling some ‘losers’ can help offset some of the tax effect of gains.