July 2014
For the 12 months to 30 June 2014 the S&P/ASX300 accumulation index was up 17.3%. However, the S&P/ASX300 accumulation index fell 1.5% in June, its first month of negative returns since January 2014 (CYTD +2.9%).
Geopolitical risk heightened during June as fighting in Iraq intensified and the oil price moved up in response. The US Fed continued tapering its asset purchases by another US$10bn to a monthly pace of US$35bn. The People’s Bank of China also announced some loosening of lending conditions.
The best performing sector during June was the REITs followed by the Utilities. The worst performing sector was the Consumer Staples followed by the Industrials.
This month we consider some of the themes which could impact the Australian market over the next 12 months including: (1) the impact of global liquidity no longer getting looser; (2) the subdued household sector; (3) the outlook for the Chinese property sector; (4) the direction of the Australian dollar; and (5) the recent spate of IPOs and M&A.
Ralton SMA Monthly Reports