2013 won’t be a year without risk, but the equity market rally that stubbornly pushed through 2012 will continue.  With bond and cash yields on the decline, we expect investors to be lured back into equities in search of better sources of income and return.

The start of the New Year brings more optimism to equity markets, which we expect to continue rallying throughout 2013.  This expectation is being driven partly by the likelihood of further rate cuts in Australia and a sustained rally providing support for high yielding stocks as investors look for alternative sources of income. We will continue to favour large cap stocks in developed markets over emerging markets.

The rally won’t be risk free

There are always risks and uncertainties in equity markets, and the rally will not rise in a straight line.

Some of these risks are similar to 2012, but we hope investors don’t allow their imaginations to run wild again and extrapolate that another global meltdown is on its way. The reality for 2012 was that the world didn’t end and Europe (which generated most of the concern) had the best performing major equity market. In fact, most major equity markets had high teen returns when you include dividends.

Source used:
Instreet Investment Ltd Market opinion and commentary
January 21, 2013

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Studies show that families who have prepared a financial plan feel more confident and report more success in managing money, savings and investments than those who have not. 

What a wonderful quote … “Stop pretending you don’t have what it takes.  Start from where you stand, not from where you’ve stood.”

How often do we allow our limiting beliefs or what has happened to us in the past determine our future?  How often do we allow the “If only I…” excuse to creep into our vocabulary?
You have what it takes to start the project, the goal or the next challenge. You may need more education, experience, energy, expertise or knowledge to complete the goal, however you have enough to get started now. Don’t let what the end goal looks like completed stop you from starting what needs to be done now.
Start now, you have what it takes and if you don’t you will find it.

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January started with a bang and ended up rising by more than 5%, erasing almost half of the losses sustained in the whole of 2011. Just as Europe had been a force for bearishness during much of 2011, hints that some sort of resolution was close were enough to get global share markets running strongly.

The strong rally in global equity markets in early 2012, especially after such a weak 2011 raises some obvious questions – what has changed and is the rally sustainable?

The largest positive change is the significant increase in the European Central Bank’s Longer Term Refinancing Operation (LTRO) announced in December which, to all intents and purposes, gives European banks access to almost unlimited cheap medium term funding.

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There are 7 disciplines you must develop if you want to achieve all that is possible for you. You can learn these disciplines through practice and repetition until they become automatic.

Goal Setting

Every morning, take 3 to 5 minutes to write out your top goals in the present tense. Get a spiral notebook for this purpose. By writing out your 10 goals at the beginning of each day, you will program them deep into your subconscious mind.

This daily goal writing will activate your mental powers. It will stimulate your mind and make you more alert. Throughout the day, you will see opportunities and possibilities to move more rapidly toward your goals.

Planning and Organising

Take a few minutes, preferably the night before, to plan out every activity of the coming day. Always work from a list. Always think on paper. This is one of the most powerful and important disciplines of all for high performance.

Priority Setting

The essence of all time management, personal management, and life management is contained in your ability to set proper priorities and use of your time. This is essential for high performance.

Concentration on your Highest-Value Activities

Your ability to work single-mindedly on your most important task will contribute as much to your success as any other discipline you can develop.

Exercise and Proper Nutrition

Your health is more important than anything else. By disciplining yourself to exercise regularly and to eat carefully, you will promote the highest possible levels of health and fitness throughout your life.

Learning and Growth

Your mind is like a muscle. If you don’t use it, you lose it. Continuous learning is the minimum requirement for success in any field.

Time for Important People in your Life

Relationships are everything. Be sure that in climbing the ladder of success, you do not find it leaning against the wrong building. Make time for your relationships every day, no matter how busy you get.

Action Exercise

These 7 disciplines will ensure that you perform at the highest level and get the greatest satisfaction and results from everything you do. Study these 7 disciplines and then make a plan for how you can incorporate each of them into your daily life.

Source: Brian Tracy [26/12/2011]

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The new year is a good opportunity to reconsider financial strategies and goals.

Below is an easy-to-follow guide to getting your finances in order for the year ahead.

Have your key financial goals changed?

Our lives are not constant and our goals change slightly from year to year. Also, major life events such as serious illness, the birth of a child, inheritance, marriage and the death of a parent or spouse can all result in significant changes to our wealth management goals.

Prioritise your goals

Not all goals are equal and to ensure you aren’t overwhelmed with the task ahead of you, it is important to rank and prioritise goals and decide what timeframe you want to achieve them in.

Short, medium or long term?

Most industry experts agree that a short-term goal is one that can be achieved within a year or so. Medium-term goals typically require two to five years, and long-term goals usually take longer than five years.

If your financial goals have changed, how will this affect your financial strategy?

This is where the advice of a financial adviser is critical. We have the tools and knowledge to create projections that take into account changes to your goals, and changes to your timeframes for achieving them. These projections will help you to see where your plans for savings, assets or investment contributions may need updating.

Be investment savvy

Make sure that your investments support your level of risk and your goals. We can develop a tailored analysis that best suits your individual risk preferences and goals.

Reflecting and thinking about your financial position and setting a clear path is critical to making sure you reach your goals. Talk to us about making sure you are always on track.

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