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Oct 2016 Market Update

Current Assessment Of Equity Asset Markets

 

For A More Detailed Analysis

Click Here for the Oct 2016- Perspective Market Update

In summary:

  • There is an increased prospect of instability in politics that will have a negative feedback effect on the economy in the USA 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 US equities 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 equity prices in the US of the order of 10% or more within the next six months. This would offer an attractive accumulation opportunity for investors operating on a longer-term 5 to 10 year time frame as we see continued low bond yields being fairly supportive of equity prices in the medium to longer term.
  • There are some not insignificant risks of a more substantial and lasting fall in equity markets and these risks need to be monitored closely.

 

Over the next two years, events could diverge from the long-term baseline scenario in ways that would impact asset returns.

For A More Detailed Analysis

Click Here for the Oct 2016- Perspective Market Update

 

 

 

 

Madison

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