Monthly Summary - Oct 2019

Economy and Indices

The ASX was up 2.8% for the last month.

The AU markets rising seems incongruent with the global macro stance, summarised as:

• Trade Wars continue

• Currency Wars increase

• Investment remains subdued based on the first two points

• The longer these issues continue, the greater the risk of recessions

Recessions are not fun for many of us and are terrible for most portfolios. The key to being invested during recessions is to have the portfolio invested in the right areas.

There are more companies reaching new heights that many of the previous months. This is the share market appearing to shrug off the greater market concerns. However, in my research, the times when new highs flood the markets is just before a quick dip down.

Leading Sectors This Month

Information Technology +6.8%

Financials +5.8%

Energy +5%

Lagging Sectors this month

Communications (Telcos) – 3.7%

Property -2.8%

Health Care -0.5%