THE THREAT OF GLOBAL DEFLATION

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While a constant concern since the Global Financial Crisis (GFC) has been that easy monetary policies would cause surging inflation it simply hasn’t occurred. The absence of inflationary pressures is a good thing, as it means the global “sweet spot” of okay economic growth, with low interest rates and bond yields can continue. But what if we end up with sustained deflation? A renewed plunge in bond yields over the last year to record or near record lows is warning of just that.

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WILL YOU HAVE ENOUGH TO RETIRE ON?

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Research shows Australians’ savings rates are among the worst in the world.

The global survey of 16,000 showed Australians expect their retirement to last an average of 23 years, but their savings and investments are on track to run dry within 10 years, making it the largest gap in Asia and the fourth largest globally.

The research also revealed more than half of the nation has never saved specifically for retirement outside of compulsory superannuation.

Globally, an average of 39 per cent of people have not saved or are planning to save for retirement, compared to 53 per cent in Australia.

With wage growth in Australia now slowing to 2.6 per cent per annum, the lowest rate of growth since 1998, many Australians were struggling to afford retirement.

One in six people believe they will never be in a financial position to fully retire.

The research found more than a third of retirees felt their preparation was insufficient and half feel they should have started saving at age 30.

 

2015 – A LIST OF LISTS REGARDING THE MACRO INVESTMENT OUTLOOK

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2014 saw good returns for diversified investors as the global economy continued to grow and monetary conditions remained easy, but a combination of uneven global growth, worries about deflation, plunging commodity prices, soft growth in Australia and geopolitical concerns meant returns were uneven across asset classes.

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THE PLUNGING OIL PRICE – WHY AND WHAT IT MEANS

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The past year has seen the world oil price fall by more than 50%. Late last year as the fall accelerated this started to act as a drag on share markets and this has resumed at the start of this year as the oil price has continued to slide. But what’s driving the oil price plunge and isn’t a fall in oil prices meant to be good news?

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