Market Makers
The Queensland Flood Continues
January / February 2011
There has been much speculation about the impact of the Eastern Seaboard Floods on the Australian Economy. Clearly it is devastating for farmers having their crops wiped out- no income for quite some time.
Supply shortages of fruits and vegetables will no doubt have an inflationary effect. Let's hope the Reserve bank does not act the same as it did after the North Queensland cyclone did a few years back and put up interest rates because bananas became expensive!
Check your policies!
January 2011
The flood crisis has highlighted a major under insurance issue - As it was in the Victorian Bushfires as well.
So many people have either left their house and contents policies lapse, or are significantly under-covered. This has a dramatic impact on already strained circumstances.
For Example : if the replacement cost to rebuild a home is $200,000 and you are covered for $150,000, in the event of a full claim you are considered 25% under insured. That means the insurance company may only pay out 75% of the amount you are covered for i.e. $112,500.
Not a nice thought!
The End is Nigh!
January 2011
At last we are seeing some progress with the Astarra transfer to AMP.
For those of us keen to see some accurate investment valuations, it looks like that won't occur until the full balance has transferred to AMP.
Reducing investment management costs
4th January 2011
Firstly welcome to 2011. My first day back after some family time at the shack.
Seagrims advisers have been looking at different ways of reducing portfolio management expenses while still accessing above average returns in the present climate.
Our thinking is still the same as it was at the start of the GFC, basically because we know there are more shocks to emerge over the next 12 months. Our advisers have been adding term deposits to client portfolios in superannuation over the last 12 months as a safety and liquidity factor.
In these markets safety of capital is the primary focus, and adding tern deposits and listed investment companies (LIC's) to your portfolios can improve security and reduce management fees.
A win- win solution.
Please talk to your Seagrims adviser
about adding term deposits and LIC's to your portfolio.
Peter Seagrim
Managing Director
Market Makers Explained
Peter offers a brief update on events around the world and our interpretation of the likely impact these events may have on your investments.
You will no doubt often find stories in the media and wonder how these may affect your financial future. Peter aims to offer some explanations of how the Seagrims team views these events and plans strategies to maximise profits and protect all of our clients from abnormal situations.
Please Note
All information contained on our website (including any website that is operated by us) or in newsletters is considered general advice; your personal circumstances have not been taken into account. If you're in doubt about the suitability of an investment please seek specific professional financial advice from your Seagrims Adviser.
