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March 2023 - Market Scoop

  • Synergy Private Wealth
  • Mar 8, 2023
  • 2 min read

After a difficult 2022, financial markets are slowly being convinced that inflation is beginning to settle, with attention now shifting towards the size of the economic downturn and the impact on earnings.


Although we have strong views on where markets are travelling over the next 3 to 5 years, the next 6 months could easily see markets swing by 10% - especially as the following thematics play out:

  1. Energy remaining expensive

  2. European unity continually being tested

  3. Artificial intelligence likely to appear everywhere

  4. Global recession risk will remain elevated

  5. On the back of a horrible 2022, bonds are now back!

  6. Inflation should begin to cool

  7. The US will hit their debt ceiling in ~June which could result in a stalemate like 2011

Looking a little closer to home, based on recent data from CommSec’s State of the State report, Australian states and territories remain supported by strong job and commodity markets at a time of rising interest rates.


Queensland is Australia’s top-performing economy and has benefitted from strong relative and absolute population growth, a strong job market and buoyant overseas demand for energy resources, such as coal and natural gas. Tasmania is now in second position but there is little to separate the top two economies. South Australia has lifted from fifth to third with the lowest jobless rate on record.

Earlier this week the Government announced their intention to increase the superannuation concessional tax rate on balances over $3 million from 15 per cent to 30 per cent – a change designed to generate $2 billion in extra tax revenue every year. Fortunately, the proposal has to pass the usual parliamentary process and if legislated as announced, the change will not commence until 1 July 2025 – after the next Federal election

 
 

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Joshua Fileti and Shane Case are authorised representatives of Paragem Pty Ltd AFSL 297 276, ABN 16 108 571 875.

Synergy Private Wealth is the registered trading name of Synergy PW Pty Ltd, ABN 706 109 470 03, corporate authorised representative of Paragem Pty Ltd.

The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.
 

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