The Australian market, excluding reinvestment of dividends, rose 14.8 per cent in the year to 31 December 2013, from 4,664.6 to 5,353.1. The vast bulk of this gain came in the December 2013 half-year, and reflected the rally in many international markets coupled with the record low cash rate of 2.5 per cent and the declining Australian Dollar.


In the June 2013 half-year, the market only rose 2.4 per cent and was characterised by weak commodity prices, some severe earnings downgrades and rising bond yields.

For the year to 31 December 2013, the US S&P 500 rose 29.6 per cent to a record high of 1,848.4 – the largest annual increase since 1997. The Japanese Nikkei 225, up 56.7 per cent to 16,291.3, recorded its largest annual increase since 1972. Meanwhile, the Shanghai Composite Index continued its poor performance – down 6.7 per cent to 2,116; 65 per cent below its record high of 6,124 back in late 2007.

China’s shadow banking system, for which there is no asset quality information, received a lot of negative attention, while Fitch Ratings’ Charlene Chu claims China’s “credit-driven growth model is clearly falling apart”.

Despite this, iron ore rallied 12.9 per cent in the December 2013 half-year to US$131/tonne, while Copper recovered by 11.5 per cent to US$3.40/lb. The Gold price had its the worst annual decline since 1981; down 28.3 per cent to $1,202.30/oz, however, much of this decline took place in the June 2013 half-year.

Ten-year bonds performed poorly, as the global economic recovery gathered pace. The yield on Australian ten-year bonds increased by 0.97 per cent to 4.24 per cent, while the yield on US bonds increased by 1.28 per cent to 3.04 per cent.

The Australian Dollar fell against most major currencies: down 14 per cent against the US Dollar to US$/A$0.89, down 19 per cent against the Sterling to GBP/A$1.86 and down 21 per cent against the Euro to EUR/A$1.54.

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This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564) and may contain general financial advice that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs.


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Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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