Farewell 2018 and welcome (maybe) to 2019

The global financial crisis is now a distant memory in some minds, with artificial stimulus lifting all “boats” for over ten years, delivering strong returns for investors.  2018 was the year where we started to see volatility creep back into markets.  First we saw the correction in February that never really happened, most equity markets were off -10%, some expected to see another couple of legs down, but we saw a reasonably quick bounce back.  The local market recovered all its lost ground by mid year and we then saw it trend sideways. The highs for the year came in September, but we have since seen risk assets pull back, before the Christmas bounce.  

From peak to trough that equated to a -14% fall in the Australian Equity market and -20% for the US equity market, although arguably overvalued, with more to come.

Source: Google Finance

The Fed is no longer purchasing assets and US interest rates have moved from a falling to a rising cycle.  The trend is turning.  In Australia, our two speed economy is also slowing.

“it was a year when anyone who preserved their capital did well”

Through the year using appropriate management, diversification and portfolio construction our clients were able to de-risk their portfolios and avoid the full force of the market drawdowns.

As we enter the new year, will cash be king, or was Christmas the entry point to buy the lows?  We expect further volatility from here.  It appears residential property, with low or negative yields and potential capital losses, won’t help either.

With a new year, comes a new opportunity to improve your financial position.  It is never more important than now, with low interest rates and market volatility.  Whether it be planning for retirement or reducing your debt, now is the right time to sit down with a Financial Planner and devise an appropriate strategy to assist you achieve these goals.  As Financial Planners, we gain great satisfaction in sitting down with clients to see where they are now and devising a plan to get them to where they want to be.

Don’t be the one who says ‘I wish I did this years ago’, contact Oliver or Luke at Ocean Advice for a complimentary initial discussion.

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Ocean Advice

Street Address
Marquesas North, First Floor
17/247 David Low Way
Peregian Beach, Qld, 4573

Postal Address
PO Box 114
Coolum Beach QLD 4573

Phone 07 5471 2099

ABN 54 168 712 052

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