The Spring Edition of ‘Your Personal Wealth’ is attached with our compliments.
This lockdown year has been a great challenge to us all, especially if you are locked up in Victoria. Some strange stories that have made the press have people wondering if this is really Australia? With business struggling, and many jobs being lost, it is strange to see the Share Market advancing to new highs, especially in the United States of America. Markets are supposed to be ‘forward looking’. We can thus assume that medical miracles are just around the corner! Let us hope so.
As the United States election draws closer, the United States Congress and the Federal Reserve have no ‘reservations’ in printing vast amounts of dollars. In due course, these dollars need to be repaid or the currency is debased and that has been the case now for over 100 years. The purchasing power of the United States Dollar has probably decreased by 95% or more in that time through inflation. The recent Federal Reserve meeting has decided that inflation has to rise above the 2% benchmark. Further, it is possible that the Chinese currency will depreciate against the United States Dollar and create more problems for Australian exports. May we live in interesting times indeed!
On a more personal note, I have just returned from a three-week ‘safari’ around Queensland. Firstly, west to Birdsville, north to Mount Isa and Cloncurry, south to Winton, Longreach, Quilpie, and Cunnamulla then finally east to St George and Brisbane. It was wonderful to see this beautiful country again. Wildflowers in the desert after rain, and the resilience of those outback towns and people. Please make some plans to see them soon.