The Investment Market in 2019
Happy New Year everyone, and what a start to 2019 we’ve had so far!
I thought I’d touch on a few things that will have a direct effect on investment markets this year.
The UK is still trying to work through Brexit. It looks like Theresa May and the Conservative Party have really messed this up. They have until March 29 this year to come up with a working solution.
In the US the Trump government has shut down services in an attempt to get the Democrats to agree on a funding package that includes building of the Mexican wall. An inactive government is a problem for the economy.
The US / China trade war, another Trump government initiative, will continue have an effect on markets. Less trade means less profit. This one is likely to hurt US residents more than the chinese.
In Australia we have a federal election coming up, probably in May. The federal labor opposition has already announced changes to negative gearing on property and the cash refund on franked dividends. Election years are generally not great for economic growth, so adding in a couple of major changes will likely put the go slow on both the property and share market.
The final report from the financial services Royal Commission is due at the start of February. This will be a political hot potato, and more changes will be announced for the banking sector, superannuation and financial services.
And finally, the Productivity Commission report into Australia’s superannuation system was released on the 10th of January. We have another short video on our website that covers this one.
There’s a lot happening in 2019, so strap yourself in and enjoy the ride!