Turning the tables on last month, in October it was global stocks that led the way, the MSCI World bouncing back hard with a gain of 5%. US markets did a little better than that up 7%, the lift in the S&P 500 driven in no small way by the performance of EV maker Tesla (up 44% for the month!), becoming the latest member of the trillion-dollar-valuation club.

Outside of a solid gain in Aussie gold producers, and some pockets of strength within the technology sector, the local share market was weighed down by some dramatic moves on the bond market.

Last November, the Reserve Bank of Australia (RBA) announced that they would commit $100 billion to buy government bonds, and would specifically target the 3-year part of the curve, the objective being to hold 3-year rates at 0.10%.

On the 29^th of October the RBA stepped away from the market in 3-year bonds, effectively waving the white flag on yield curve control. The result was an almost 90 basis point rally in 3-year bonds and a 60 point rise on the 10 year. 

Feedback from business owners, industry experts and our clients over the last month in particular, clearly paints the picture that higher costs are moving through the system. Wholesalers across almost all sectors, but particularly those connected to a global supply chain in China, are not getting commitments on delivery times. The next 6 – 12 months will be fascinating as the RBA appears committed to holding rates until wages growth moves into their target band of 3 – 4%. 
 

One of our core pillars at Entrust is education, and sharing our knowledge with our client community.
 
Our goal with 3 Minute Tech is to provide quick and to the point videos to explain sometimes technically challenging topics in simple and easy to understand language.

Our next Episode 14 of 3 Minute Tech is Part A of a two part series on "Succession Planning". 

There are a number of previous 3 Minute Tech episodes contained in our "Insights & Commentary" section that you or friends and family may find informative and useful. The topics covered include:

Episode 1: "Who gets my super when I die"  
Episode 2: "How much tax do my beneficiaries pay?"
Episode 3: "How can I reduce the tax burden to my adult children”
Episode 4: "Is Super still Super?"
Episode 5: "How to build your Super Nest Egg?"
Episode 6: "Concessional Contribution Catch-up Provisions"
Episode 7: "Contributing to Super over age 67 ("The Work Test")"
Episode 8: "The Downsizer Provision?"
Episode 9: "2021 Federal Budget"
Episode 10: "2021/22 - Changes to the Super Thresholds"
Episode 11: "Estate Planning – Wills and Testamentary Trusts"
Episode 12: "Estate Planning - Enduring Powers of Attorney"
Episode 13: "Estate Planning - Enduring Powers of Guardianship" 

Referring Entrust

We understand that referring Entrust to a family member or friend represents trust that the service we provide has an important role to play.

Please do not hesitate to forward this edition of "Monthly Musings" to those who you believe may benefit, or alternatively they are welcome to contact us. 

Entrust Wealth Management
A Division of Euroz Hartleys Limited
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Telephone: +61 8 9476 3900
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Email: info@entrustwealth.com.au

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This publication has been compiled by Entrust Wealth Management, a division of Euroz Hartleys Limited ABN 33 104 195 057 AFSL 230052.

This publication is current as at time of preparation. Past performance is not a reliable indicator of future performance. Any outlooks in this publication are predictive in character. Whilst every effort has been taken to ensure that the assumptions on which the outlooks given in this publication are based are reasonable, the outlooks may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The results ultimately achieved may differ materially from our outlooks. Material contained in this publication is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The information and any advice in this publication do not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This publication may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. We are not responsible for such material. To the maximum extent permitted by law: (a) no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up-to-date or fit for any purpose; and (b) neither Euroz Hartleys Limited, or its representatives, is in any way liable to you (including for negligence) in respect of any reliance upon such information or advice. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from your adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.  For further information on any issue discussed in this publication, or on any financial matter, please contact your adviser.