Can you believe it is already the end of September? We're well into tax season and have already lodged over 500 tax returns since July and will be commencing quarterly management account meetings with our business clients from October.

Since the Federal election, we have seen a noticeable pick up in confidence given that there is more certainty in relation to tax law over the next three (3) years.

That being said, there always appears to be some world-wide economic issue that seems to create uncertainty in markets and ultimately has an impact on our everyday business lives. I recently went to a luncheon where a well-known economist discussed the trade war escalation between the USA and China. They presented interesting statistics and provided a thought provoking commentary on the world economy. I have listed below some of the main take home points from the presentation, which I thought would be of interest to you:

1. For the first quarter of the 2019 year world growth was better than expected. Most economists expect a drop in world growth in quarter two.
2. The job market around most developed countries is tightening but the pace of unemployment rated dropping has eased.
3. Quarter two global data is mixed with global industrial production sluggish and bond yields in many countries in negative territory
4. The USA is experiencing slowing growth and lower inflation.
5. European growth is modest and inflation continues to be low.
6. Australian growth slowed from 3% to under 2% on an annual basis with inflation below the 2-3% inflation target band.
7. In Australia, jobs' growth has weakened but housing auction rates are strengthening.
8. In Australia, wage growth has slowed.

At the end of the presentation I came away slightly concerned that the trade war between the USA and China will influence future economic growth but I didn't get the feeling we are heading for another GFC event.

In summary, my conclusions from the presentation were:

1. Interest rates will continue to be at record lows - so if you have opportunities to purchase properties and businesses, the cost of finance is very low.
2. While there will always be negative talk around the world economy, the best times to take advantage of business opportunities is when no one else is.
3. The days of consistent year-on-year growth of all types of assets could be a thing of the past so be selective in whatever asset you purchase whether it be shares, assets or business.

Regards,
David Shaw
Founder & CEO