Of the Australian companies that have reported so far, more have beaten expectations than missed, most lifted guidance for next year, and three-quarters of them increased the dividend. Telstra aside (the company has halved the interim dividend as it grapples with the NBN), the average dividend increase is about 4% – twice the average wage rise. It is fair to say that the key contradiction in the Australian economy is on display. The best thing about the economy is that after years of relying on monetary stimulus and state spending, private sector companies are flying. The worst thing about the economy is that the wages those private sector companies are paying is stuck in the mud: wages growth is 1.9%, according to this week’s report from the ABS. So those who invest in companies are doing a lot better than those who work for them.
Julie's Blog Posts
Imagine being in a boat in the ocean on a very still day. No wind. No swell. The water is as flat as a mirror. The calm goes on for a just long enough for you start to feel like it's normal. Then when a small wave comes, it feels huge, and regular waves feel enormous. As scary as it might feel...remember waves are normal. Occasional storms are normal. And the last thing you want to do when you get into one is abandon ship. (Sketch and words taken from the blog of Carl Richards of behaviorgap.com)
The sharemarket gyrations have started for 2018! The US share market is long overdue a decent correction and we might be at the start of it.
Take a read of Shane Oliver's view on markets to get the whole picture.
My take? It's going to be a volatile year but unless the US goes into recession (highly unlikely at this stage!!) then the market movements are only turbulence.
Got any questions? Just pick up the phone or send me an email.
Till next time,
Happy New Year!
Are you a new years's resolutions fan? If you fall into the no category, remember everyone in life needs something to look forward to. It doesn't have to be a big audacious goal (but they are good too) - even a small home project around the house or a weekend away with your family are great things to put on the to do list for 2018. Human beings work best if they have a reason to get out of bed every day and something to look forward to in the future!
Remember.... "Aim for the moon. If you miss, you may hit a star".
"Do the best you can until you know better. Then when you know better, do better".
"Don't wait for your feelings to change to take the action. TAKE THE ACTION and your feelings will change".
"You cannot swim for new horizons until you have courage to lose sight of the shore".
"There is nothing more important to true growth than realizing that you are not the voice of the mind - you are the one who hears it".