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July 2016 Market Update

Current Assessment Of Equity Asset Markets

For A More Detailed Analysis

Click Here for the July 2016- Perspective Market Update

In summary:

  • The Australian equity market is on the slightly expensive side of fair value but is significantly more attractive than most international markets;
  • The US equity market is still more attractive compared with most other international markets on a long-term valuation basis.
  • There is an increased prospect of instability in politics that will have a negative feedback effect on the economy in Australia and elsewhere. Caution is still warranted.
  • The low level of bond yields and short term interest rates and the pursuit of yield are the key factors making Australian and the US equities markets appear to be reasonably fairly priced against other asset classes.
  • Given the volatility of markets we could not rule out a further significant pull back in prices in Australia or in the US of the order of 10% or more. This would offer an attractive accumulation opportunity for investors operating on a longer-term 5 to 10 year timeframe as we see continued low bond yields being fairly supportive of equity prices in the medium to longer term.

For A More Detailed Analysis

Click Here for the July 2016- Perspective Market Update

 

 

 

 

 Madison

Planning Perspective Gold Coast Pty Ltd is a Corporate Authorised Representative of Madison Financial Group Pty Ltd | AFSL No. 246679 |

ABN 36 002 459 001 http://www.madisonfg.com.au

This information is of general nature only and neither represents nor is intended to be specific advice on any particular matter. We strongly suggest that you seek professional financial advice before acting.