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Daniel Minihan

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A word from Daniel Minihan

The Christmas and New Year period has proved to be an interesting one for investment markets. In the lead up to Christmas, and in the first few weeks of the New Year, markets bounded ahead, perhaps riding the Christmas cheer and the fact that it appeared that the difficult previous few years were finally behind us, and we had a new decade to look forward to. This quickly changed however, with the realisation that although we are in a new decade the problems that concluded the last one will need to be paid for and so issues of debt started to become a focus of many in the market.

Economic commentary

The June quarter could be viewed as the time when things started to turn around for the world economy, or at least began to seem ‘less worse’. The U.S. housing market, the sector that first highlighted the problems of loose credit control, which has swept world economies, began showing signs that it may be bottoming. In the 12 months to May U.S. houses prices were down 3.6 per cent but this is a much improved from the 24.4 per cent decline in the 12 months to February.

Economic commentary

The global economy continued to deteriorate throughout the quarter leading the International Monetary Fund (IMF), World Bank and Organisation for Economic Co-operation and Development
(OECD) to all forecast a global contraction this year.

A word from Daniel Minihan

The past three months has seen a further fall in financial markets, followed by a very strong rally that saw U.S. markets produce their best monthly return since 1933. This rally was initially sparked by more optimistic outlooks from the major U.S. banks and was perpetuated by the release of the ‘Legacy Asset Program’ by the U.S. Treasury, which was generally well received.

The road to smarter investments

Moore Stephens Melbourne has developed an investment strategy based on empirical research.

New rescue plan

Early Tuesday morning, March 24 2009, U.S. Treasury Secretary Timothy Geithner released the ‘Public-Private Investment Program for Legacy Assets’ or PPIP for short.

Bailouts and stimulus packages

The global economy

The boom and bust cycle in the U.S. property market moved decidedly into bust mode in the December quarter with the S&P/Case-Schiller index showing house prices in 20 major U.S. cities falling by an
annualised 18 per cent. The biggest falls were on the West Coast where Phoenix declined by 33 per cent for the month of October 2008 alone.
Wall Street's message to the Obama administration was clear Tuesday, even if the plan to save the banking industry wasn't. Unhappy with a lack of clarity in Treasury Secretary Timothy Geithner's new financial rescue plan, investors launched a massive stock selloff, raising further questions about when confidence would be restored to the market.
Borowing to invest within your Self-Managed Super Fund (SMSF) has the potential to boost your super and help you reach your retirement goals sooner. In September 2007, the government opened the door to gearing within SMSFs – meaning it’s now possible to borrow to invest in a broad range of investments inside a SMSF.