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.
- 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.