A series of unexpected events

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Perpetual Private Insights

Perpetual Private’s Head of Investment Research, Kyle Lidbury, takes a look at the unexpected events of 2016 and their investment implications for the year ahead.

  • Global equity markets performed strongly – surprising many post the election of Donald Trump.
  • Australian shares (ASX100) gained 5.8%, led largely by Financials (and the big 4 banks) which were up 10.8% as investors saw a steeper interest rate yield curve helping their profitability.
  • Australian Real Estate Investment Trusts (ASX300 A-REITs) logged another fall in the December quarter (-0.7%) in the face of rising long-term bond yields.
  • The RBA Cash Rate remained at its all-time low of 1.50%. As of early January 2017, financial markets are pricing that the Cash Rate will remain steady over 2017 with one expected rise of 0.25% in the first half of 2018.
  • In response to expensive asset class valuations, Perpetual Private is maintaining high levels of cash in Implemented Portfolios. Ongoing financial market volatility will provide attractive investment opportunities to invest this capital. 

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. 

This information has been prepared by PTCo. It contains general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial or other adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.