There is now significiant pressure on the Reserve Banks to cut interest rates with this pressure being applied in the public arena.
Our market is moving up now towards 4450 points as investors look to gain some sort of return on their investment. This is due to us facing a low interest rate enviroment.
Next week will mark the beinging of some of the big news events for the year with a veritable storm of market moving news.
- The Reserve Bank will meet on May 1… expectation are that the rates will be cut. However, will the banks pass this on? I expect not in full.
- ANZ reports on the 2nd of May then Westpac reports on the 3rd of May.
- We have France and Greece going to the polls May 6.
- Orica reports on the 7th of May.
- NAB on the 8th of May.
- Then we have our Budget brought down on 8th of May, with tax increases expected for the “Wealthy” along with a reduction of rebate for the “Wealthy”. Once again, many items in this budget have been leaked to the press, with the big one being Super Surcharge. This is where individuals earning more than a certain amount get slugged extra tax on their contributions. John Howard did away with this tax in a bid to encourage people to invest more into super and provide for their own retirement.
Our current fiscally challenged government is so short-sighted in achieving a budget surplus to try and recoup the funds wasted in the stimulus packages that they are now digging a hole for the future.
For more information on any of the above please contact us on 07 4771 4577.
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