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Sept 2016 Market Update

Current Assessment Of Equity Asset Markets

For A More Detailed Analysis

Click Here for the Sept 2016- Perspective Market Update

In summary:

  • Most major global equity markets are in the fair value range with the exception of India, France and Italy which are expensive and Russia and China which are cheap;
  • Within the fair value range, the Australian equity market is still relatively cheap compared with the US equity market;
  • The low level bond yields and short term interest rates in most developed markets (including Australia) are the key factors making Australian and global equities markets reasonably attractively priced;
  • Offsetting this a further rise in bond yields, especially in the corporate bond market, may trigger an equity market sell-off in the short run;
  • Overall, taking into account valuation, momentum and qualitative indicators, holding Australian and International equities at benchmark weight is warranted but investment of significant new cash flow should be staged over a six to twelve month period. Property securities should also be at benchmark or neutral weight for medium to long term portfolios but could well be trimmed back to half that weight for more tactical portfolios.

For A More Detailed Analysis

Click Here for the Sept 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.