Renewed volatility in markets has awoken the media from its  slumber. News directors drag out dated file footage of frantic traders and summon talking head experts to explain to ‘mums and dads’ what it all means. Well, what does it mean? More importantly, does it matter?

But the key point for long-term investors is that markets are volatile by nature. Stocks go up and down as information and expectations change. Sometimes, this happens very gradually. Other times it happens more suddenly.  Volatility is the price we pay to gain access to longer term higher returns than those associated with so-called safe assets such as cash.  Volatility is a normal and expected part of the market.

Last night the Federal Government handed down the 2018-19 Federal Budget. The GPL team have reviewed the Budget and prepared a summary of the key measures to be considered. These include:

It seems everyone is excited about Bitcoin at the moment – in either a positive or negative sense.  For as many out there espousing it’s virtues there seems to be just as many labelling it as a bubble and as an accident just waiting to happen.

Whilst the underlying technology is potentially game changing and worthwhile, its other attributes do concern me.  The exact things that make bitcoin attractive – anonymity, ease of transfer from one party to another, lack of government oversight, accessible in any country without capital controls, not subject to banking regulations – are denounced by national governments.  Think of everything governments stand to lose.

I hope this post budget morning finds you well.  Please find the attached summary of the major announcements from last nights Federal Budget.  As always, the devil is in the detail and so we will be reviewing the budget more closely over the coming days as more information is made available.  We will also cover off on any issues that we believe will impact on your financial situation and advise accordingly.