Majella Wealth Newsletter
December 2011
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Majella Wealth Newsletter |
Thank you from MajellaThanks to all of our clients for working with us for another year and to all the new clients who joined us over the year. We continue to strive to do our best to keep you on track to grow and protect your wealth. We also continue to grow our business. We now support clients from all over Australia (Sydney, Canberra, Brisbane and even Darwin) and extend our services to overseas clients in New Zealand, Singapore, Italy and England. 2011 was another challenging year in share markets, with the Australian share market maintaining the upward momentum from 2009 until April and then falling away as uncertainty about Europe dominated the news. One consolation for investors has been the high dividends offered by Australian shares and the relatively high (by global standards) cash and term deposit rates we have had available to us. However, as we discuss below, it is worth being patient with the share market. Let's hope 2012 sees more decisive action in Europe and ongoing economic growth in Australia and our Asian neighbours. It is worth being patient with share investmentsIt's getting close to three years since we reached the bottom of the Global Financial Crisis share market crash (March 2009). Since then the Australian All Ordinaries is up 37%. It still needs to rise 61% to fully recover. At the moment, that happening seems to be a distant hope. However, if you were invested through the GFC (and still have the tolerance for sharemarket risk), then history suggests it is worth being patient and staying invested. In the past it has taken up to 6 years for the Australian share market to recover from a crash. Even if it takes 7-10 years this time (until from March 2016 - 2019), returns from here should average 7-11%pa plus dividends. But they won't come consistently - there will be good and bad periods. In August 2009, not long after the bottom of the share market crash, we published, "Share market recovery profiles". This paper looks at what has happened in the years after previous share market crashes. We have updated this paper to see how the current recovery is tracking and you can read it here. |
Merry Christmas!We would like to wish you and your family a very Merry Christmas and look forward to working with you again in 2012. Our office will be closed from the 23rd of December until the 9th of January. However, if any urgent issues arise, please call Jo on 0414 234 932 or email Lisa at lfaddy@majellawealth.com.au All the best for 2012 Jo and Lisa |
Our ServicesWe are committed to offering the highest quality personal financial management service to our clients. With 20 years experience in the finance industry, we offer our clients a vast pool of investment and financial market experience. As Certified Financial Planners, we also have the highest qualifications for a financial planner. Our services to clients may include just one or all of the following areas:
In offering a complete financial service, we also provide strategic advice on taxation planning, loans (property and investment) and estate planning. We can also refer you to professional providers of accounting, mortgage broking or legal services. |
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