24 December 2012

Dr Shane Oliver’s 2012 Review and 2013 Outlook

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Following on from the Russell Global Outlook 2013 last week we now provide the the latest insights from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital. In this report he reviews 2012 and looks forward to what we can expect in 2013.

Key points

  • While 2012 has had its share of worries, it has turned out far better than feared and sharemarkets and growth assets have been able to generate strong returns for investors. This has been helped by investors looking for higher yields in the face of zero or falling cash rates.
  • The combination of diminishing extreme downside-risks globally, a modest pick up in growth as the year progresses and attractive valuations for most growth assets points to another year of reasonable returns in 2013. Expect interest rates to remain low globally and fall a bit further in Australia.
  • The main risks going forwards relate to US budget and debt problems, a relapse in Europe, slow growth in Australia and a sharp back-up in bond yields if investors get more confident.

You can access the full report here: AMP – Dr Shane Oliver – 2012 Review and 2013 Outlook

For existing clients we will be discussing these themes at your next regular review but please don’t hesitate to call for  chat or email any specific questions. New or prospective clients can arrange a one on one discussion about your circumstances by contacting Michael, Clyde, Fiona or Liam at our Castle Hill or Windsor Offices for an appointment to discuss the solutions available to you.

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.