iInvest Eye on the Market

Summer Edition – January 2017

Outlook for Investment Markets – Jan/Feb 2017

2016 was an exciting year for the Australian equities market due to the combination of volatility and uncertainty. Broader market performances were below those experienced in the 2010–2014 period. Total returns, measured by the S&P/ASX 200 Accumulation Index to 14 December, was still a respectable 9.5%.

The Australian economy performed relatively well, as east coast building and construction activity, mainly in the residential sector, helped offset the impact of sharply falling resources investment in Western Australian and Queensland.

Major infrastructure spending led by New South Wales added to the east coast bias. External factors, including the 25% fall in the Chinese stock market in January, upheaval surrounding the Brexit vote in June, and the Trump victory in the November U.S. Presidential election also influenced markets, causing bouts of volatility.

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