Most people headed back to the office this week.
It’s a good four weeks since Christmas, and not only is it tough to come back after a month’s break, but with the Australian Securities Exchange (ASX) losing 10.8 per cent in the intervening period, the experience is highly sobering.
When most people left for the Christmas break on December 21, the ASX All Ords was at 6309; on their return on January 21, it was at 5630. On December 21, it had recovered from a seven-day slump and had moved 63 points that day. On January 21, the biggest one-day fall was recorded for the ASX – with $43 billion wiped.
For those who put their maximum limit into super before June 30 last year, the potential to lose a large portion of super is certainly real.
The Australian dollar has also fallen in the past few weeks, and according to economists can be expected to fall another 10 per cent by the end of the year.
The FPA is working on providing material for members to take to clients and generating consumer awareness about jittery markets and the role financial planners play, FPA head Jo-Anne Bloch says.
Meanwhile, PIS chief Robbie Bennetts believes that despite the slump in the market PIS can maintain 30 per cent annual practice revenue growth to ensure dealer group expansion and market share stability.
Good luck maintaining the growth, aiming high is not a bad thing, although this year, from even the most positive sources, is forecast to be one where double-digit returns cease.
Although it’s not quite a blessing, we are indeed in 2008, living in interesting times.
