Volatility continues to be the theme in world markets with the intervening period since our last newsletter seeing the market move back up to 12 month highs, only to then fall back in June and July to once again show signs of rising.  This is in part due to the mixed signals around the world from a variety of different data that at present indicates economies are growing again, but not at a high enough rate as seen in previous recoveries. Many experts are putting this down to the deleveraging effect taking place worldwide, although some have argued that the leverage has simply been shifted from corporate balance sheets to the Government.

Setting aside the daily ups and downs it is timely to remember that investing is about focusing on the long term, so short term noise should generally be ignored in favour of sticking with your long term strategy. Speaking of long term,  it has also been a busy time for the Government and the numerous inquires and committees that have been examining the financial services industry and how it should be reformed for the long term benefit of investors. In the space of the  past 6 months we have seen the Ripoll review, the Henry report, and the Cooper review all deliver pronouncements which will affect the way financial services are delivered, priced and paid for. We will be taking a proactive approach in this regard and are currently reviewing how to achieve the best outcomes for clients.

We are also pleased to include in this newsletter an article from a guest writer and former journalist Jim Parker. Jim is now the regional director of communications for Dimensional Fund Advisers having previously spent 26 years in journalism writing about financial markets and economics. His piece in our newsletter focuses on  the value of advice and the six key factors that constitute good advice.

Finally, I would like to let you all know that Dirk Dobbs, whom many of you know, left us at 30 June this year to take up a new position outside the industry, and we welcome David Foord into the practice who will take up his role. I  would like to thank Dirk for the valuable contribution that he made to the firm and our clients over his time with us and we wish him well in his future endeavours.


Contact

Daniel Minihan
T +61 3 8635 1800
dminihan@moorestephens.com.au

www.moorestephens.com.au