Episode 29: The power of Powell’s words on global markets

Jan 22, 2019 | Podcast Episodes

The gents are back this week, discussing the highly volatile market activity following Jerome Powell’s comments; what to do as an investor during the steepest drop in the property market since the global financial crises; and the Productivity Commission’s report on Superannuation.

We’ve seen a three-week rally that has earned back everything that was lost (and a little bit more) since Jerome Powell made his speech about the direction of interest rates for 2019. There are so many headline issues at this point in time, including the US and China trade problems, Trump shutting down the government because he wants money for his wall, and Brexit. Interestingly, none of them are moving markets the way the federal reserve is moving markets.

It’s likely that Jerome Powell has learned a difficult lesson on the power of his speech, and how powerful he is in his position. He was forced to retract his previous, harder position and become more dovish. The market took it as a major signal that the ed is listening, and has been rallying strongly. In fact, on the day he made the speech, the DOW Jones industrial average rose by around 3.9%, proving how powerful that buying volume was on that particular day. Tune in now for more insights.

For professional advice on planning and thinking ahead on your investments when markets are down, contact United Global Capital today on 03 8657 7640 or email info@ugc.net.au for a no cost, no obligation consultation.

Our Investor Exchange Round Table Discussion Covered:

Joel explains how he manages clients’ portfolio strategies to navigate market volatility. Fundamentals will always win out – if corporate profits are rising, valuations of companies will have to increase. Listen in for more insights for your portfolio strategy. (8:25)

Winter is coming. Brett explaining we can expect to see more of the same in the property market, with drops in the median house prices. However, after winter comes spring. Like everything, property has a cycle and over the long-term, the market will continue to recover and prices will rise again The question you may have is what do you do now? Tune in for Brett’s advice. (15.22)

Louis discusses the Productivity Commission’s report, explaining the issue of poor performing super funds, duplicate super accounts, funds with excessive fees, high costs of insurance, and duplicated insurance that people don’t need. Tune in now for his insights on the Commission’s proposed solutions and the impact on people making choices on their super funds.  (28:20)

You Cannot Be Serious this week:

The voice behind this segment, John McEnroe, is in town as one of the lead commentators at the Australian Open. He still holds the number 1 place for ‘Top 5 Greatest Tennis Tantrums’!

Passerbys a suburban house in WA, heard a man screaming “Why don’t you die?’, and the sounds of a child crying. Of course, they called the police. When police arrived they found the man was terribly afraid of spiders and turned the house upside down to find and kill it.

Man denies turning home into a restaurant, despite the illuminated sign above the door of his house, flyers and a website, inviting people to come to his address for sushi.

Listener Questions:

Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.

Ask a Question: https://theinvestorexchange.com.au/ask/

Join the Conversation: fb.me/theinvestorexchange

The Investor Exchange Theme Music:  “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.

The post Episode 29: The power of Powell’s words on global markets appeared first on The Investor Exchange.

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