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November 2016 Snapshot – 54.2 million worries

54.2 million worries

We are going through one of those periods where it seems there is a long list of things for investors to worry about: the US election; the Fed; ever present fears about a break of the Eurozone; and China. To be sure these risks are real and in our view some combination of them could drive a short term correction in shares, but we don’t see them derailing the longer term rising trend in shares. More fundamentally there seems to be a never ending worry list which is receiving an ever higher prominence as the information age enables the ready and rapid dissemination of news, opinion and noise. The danger is that this is making us all worse investors as we lurch from one worry to the next resulting in ever shorter investment horizons in the process. The trick is how to manage the noise to avoid this.

Key points

– The combination of a massive ramp up in financial information combined with our natural inclination to zoom in on negative news is making us worse investors: more fearful, more jittery, more short term.
– Five ways to help manage the noise and turn down the worry list are: put the latest worry list in context; recognise that shares return more than cash in the long term because they can lose money in the short term; find a process to help filter noise; make a conscious effort not to check your investments so much; look for opportunities that investor worries show up.

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Intergenerational Wealth – November 2016 Newsletter

Welcome to the latest edition of our client newsletter.

Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future. In this edition we discuss Is you insurance overdue, and provide you with information on Be a senior entrepreneur on your own terms and Put your backyard to work.

If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us. In the meantime enjoy the beautiful Spring weather ahead and we hope you enjoy the read.

All the best, Emilio and the team at Intergenerational Wealth.

intergenerational-wealth-november-2016-newsletter

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November 2016 Snapshot – Donald Trump elected President of the US

November 2016 Snapshot – Donald Trump elected President of the US

After a seemingly long and difficult campaign Donald Trump has been elected president of the United States with the Republican Party likely retaining control of the House, and probably the Senate, in Congress. Just as we saw with the Brexit vote, the combination of rising inequality, stagnant middle incomes and the disenchantment of white non-college educated males has seen a backlash against the establishment and helped deliver victory for Trump. This note looks at the implications.

Key points

– Donald Trump’s election as President of the United States risks ushering in a period of policy uncertainty which could cause further share market weakness in the short term.
– Australia and Asia generally are particularly exposed to this given the high trade exposure regionally.
– Trump’s victory is a negative for “risk assets” like shares and the $A in the short term – but if he becomes more pragmatic as President, any short term weakness will provide a buying opportunity.

november-2016-snapshot-donald-trump-elected-president-of-the-us

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Intergenerational Wealth – October 2016 Newsletter

Intergenerational Wealth – October 2016 Newsletter

Welcome to the latest edition of our client newsletter, Our articles cover a range of topics which we hope you will find interesting. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future. In this edition we discuss Government pulls back on proposed changes to super and provide you with information on do parents make good employees and is your insurance overdue. If you would like to discuss any of the issues raised in this newsletter, please don’t hesitate to contact us. In the meantime stay safe and we hope you enjoy the read. All the best, Emilio and the team at Intergenerational Wealth

intergenerational-wealth-october-2016-newsletter