Affinity Insights – Issue 25, September 2024

Welcome to our 25th edition of Affinity Insights.

Spring has sprung! that means daylight saving is about to begin; children are preparing for their final assignments and exams for the academic year, and it is time to start preparing for the ‘silly season.’

Quarter 4 brings us our September Quarterly Reports, our Market Update from our Investment Committee and your Annual Tax Statements from your respective investment platforms.

We do hope you enjoy this issue of Affinity Insights, and we welcome any feedback or suggestions for future topics.

From Rodney M. DeGabriele

The forthcoming election in the US looks to be close. Historically, it hasn’t really mattered for markets or the economy which party has been elected to power in the US. Other factors have been the major cause of memorable financial events.

With that in mind, in this month’s Market Update, we review the upcoming US election, and what it means for the economy and markets. Perhaps this time will be different?

Our latest Market Update is now available to view here.

On the 26^th of March, Jessica Genovas and Molly McGinn sat the ASIC Financial Advisers exam and they passed!

Despite the challenge, with only 62% passing this quarters’ exam, both Jessica and Molly were successful in their achievements, demonstrating exceptional commitment to their studies alongside their client work.

This means that both Jessica and Molly are one step closer in becoming qualified Financial Advisers. They are now in the process of completing what the industry refers to as their “Professional Year.” The Professional Year is also referred to as a ‘year of work and training.’  It consists of 1600 hours of work and training with the help of a supervisor.

Affinity Private is dedicated to providing superior financial advice and services to our clients, and both Jessica and Molly are valuable members of our team.

We wish Jessica and Molly all the best in this time of training!

We have updated our Financial Services Guide (FSG).

Please click here to view our current FSG.

You can always access our most current FSG via our website.

Reserve Bank governor Michele Bullock says she is aware that more people than usual are seeking help from community organisations as Australia’s economy slows down and unemployment rises.

She says lower-income borrowers are over-represented in the group of people who are “really struggling” right now.

And the number of owner-occupiers with variable-rate mortgages who are in a “particularly challenging situation” is also rising, but the RBA is doing what it can to bring inflation down, re-balance the economy and return people’s lives to some kind of normality, she said.

“I understand that the board’s message on interest rates is not what many borrowers want to hear,” Ms Bullock said.

“Those with mortgages are feeling the squeeze on their cash flows not just from high inflation, but also from the increase in interest rates that has occurred in response to it.

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Anthony Albanese has confirmed that Treasury is looking at options to curb the use of negative gearing and the capital gains tax deduction for investors – but refused to confirm whether the government had asked the department to undertake the work.

Following a report by The Sydney Morning Herald and The Age that Treasury was examining policy options to take to the next election, the prime minister said: “I want a public service that is full of ideas.”

“What we do is we value the public service. So from time to time, I’m sure the public service are looking at policy ideas.”

Pressed on whether the government had asked for Treasury to work out options, Mr Albanese said: “I didn’t confirm that. Treasury I’m sure, like other departments, do a range of proposals, policy ideas.”

Mr Albanese said the government’s immediate focus, in terms of fixing the housing crisis, was boosting supply. The government is still trying to secure the passage through parliament of its Help to Buy and Build to Rent policies.

“What our government is considering is fixing housing supply by getting our legislation through the Senate,” he said.

Treasurer Jim Chalmers was similarly evasive.

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