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03<\/em><\/strong>-05-2021<\/em><\/strong><\/p>\n George Lucas, Raiz Group CEO<\/em><\/strong><\/p>\n First let\u2019s take a look at equity markets. Even as the equity markets put in strong performances in April, we\u2019re seeing investors switching into cash at the fastest rate since March 2020.<\/p>\n <\/p>\n This is driven, in my opinion, on changing expectations about whether stock markets will continue rallying now the US economic recovery is firmly under way.<\/p>\n Another driver is the potential of a large increase in the capital gains tax in the US to around 43 per cent, from the current 23.8 per cent. The thinking here is that it\u2019s better to realise capital gains now to avoid disappointment if the tax rate does rise. I think this trend is likely to last.<\/p>\n <\/p>\n Still in the US, the S&P 500 has gained 88 per cent since its March 2020 low and we saw it rally beyond 4,200 points to a new closing high last week. That result came after the US recorded an annualised pace of economic growth of 6.4 per cent in the first quarter.<\/p>\n More than 300 companies listed on the S&P 500 have reported first-quarter results so far this quarter, showing an increased earnings per share at an average of 51 per cent compared with the same period in 2020. Notably, this news has been baked into share prices for a while.<\/p>\n Interestingly, we\u2019re seeing many investors position themselves into industrial commodities, such as copper, that are in short supply following a swift resumption of demand in the US and Europe. This trend is also being driven by the prospect of inflation.<\/p>\n At the same time, it appears investors are positioning themselves for further falls in the prices of longer-dated US Treasury bonds, which offer lower investment returns as inflation rises.<\/p>\n <\/p>\n In Asia, Indonesia continues to recover, and I think that data this week will show the contraction in Indonesia\u2019s GDP eased to 0.5 per cent year-on-year. Indonesia posts Q1 GDP data Wednesday.<\/p>\n Officials in Indonesia have described the recovery trend there as \u201cvery convincing\u201d, citing improving leading indicators in March and an expected acceleration of economic growth in the second quarter.<\/p>\n Meanwhile, Malaysia\u2019s central bank meets on Thursday, with expectations that Bank Negara Malaysia will keep interest rates at a record low of 1.75 per cent.<\/p>\n <\/p>\n Locally, the big economic news was data showing Australia\u2019s core inflation decelerated to the slowest pace on record as a range of government programs reduced costs in the economy.<\/p>\n The data revealed annual trimmed mean core inflation eased to 1.1 per cent in Q1, which was the weakest reading in a series dating back to 1983. Core inflation advanced 0.3 per cent from the final three months of last year, beneath economists\u2019 estimates of a 0.5 per cent rise.<\/p>\n This week sees the RBA meet on Tuesday, with the central bank tipped to keep its key policy instruments unchanged, including holding the cash rate steady at its record low 0.10 per cent\u00a0.<\/p>\n <\/p>\n <\/p>\n Download it for free in the App store or the Webapp below:<\/p>\n <\/p>\n Important Information<\/em><\/strong><\/p>\n If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person\u2019s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. 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You should note, as illustrated by the global financial crisis of 2008, that sometimes\u00a0 not even professionals in the financial services sector understand the ordinary risks of investing \u2013 because by their nature many risks are unknown \u2013 but you still need to give it a go and try to understand the risks set out in the PDS.<\/em><\/p>\n Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don\u2019t, it is so true.<\/em><\/p>\n Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can\u2019t promise that the information is accurate, or stays accurate.<\/em><\/p>\n Any opinions or information expressed are subject to change without notice; that\u2019s just the way we roll.<\/em><\/p>\n The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. 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Even as the equity markets put in strong performances in April, we\u2019re seeing investors switching into cash at the fastest rate since March 2020.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[19],"tags":[],"yst_prominent_words":[3804,3803,3798,3801,3796,3805,3807,123,3800,3795,3802,3797,3808,3806,3799,125,122,120,3794,3787]}S&P 500 reaches new high<\/h3>\n
Indonesia economy continues to recover<\/h3>\n
Australia core prices hit record low<\/h3>\n
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