Australians believe
that the ‘resources story’ will continue to insulate Australia from the world’s
economic troubles, yet the resources sector underperformed the wider market and
fell 20%, with stalwarts BHP and Rio down a massive 30%.
Our July
newsletter reviews yet another turbulent year in the performance of the world’s
major economies and share markets. It takes a closer look at European weakness
and the relative strength of the local economy, as well as key aspects like
inflation, consumer confidence, the dollar, and interest rates. And it assesses
what might happen in the months and year ahead. You can read our July
newsletter online here.
Whilst the
global risks to the world economy remain, I do believe the governments, and the
majority of companies around the world are better placed to deal with these
difficulties compared with four years ago when the GFC troubles started. As for
resources, I am sure they will shine again, but the past financial year
illustrates perfectly the necessity for a portfolio to be well diversified;
both across sectors and regions. You may also be interested in an article I
posted to the website in April of this year which attempts to explain why the
Australian share market was underperforming the rest of the world.
www.perthfinancialplanning.com.au
www.perthfinancialplanning.com.au
