Market Insights

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Perpetual

Perpetual Private’s National Investment Specialist, Luke McMillan, takes a look at asset class performance for the September quarter, discusses current sharemarket valuations and the outlook for coming months.

Key themes

  • Positive September quarter for equities in Australia and overseas as markets recovered from Brexit vote.
  • Returns from fixed interest investments were muted – RBA’s cash rate at all-time low of 1.50%.

  • Valuations for the Australian sharemarket appear fair to full at the moment – international shares are slightly more expensive, largely a result of all-time highs of US sharemarket.

  • Government bond yields on the rise globally amid speculation of a US interest rate hike in December.

  • In response to expensive asset class valuations, we are maintaining high levels of cash in our 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. The information is believed to be accurate at the time of compilation and is provided in good faith. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Past performance is not indicative of future performance.