Dear %%first_name%%,
We have been waiting for an EU decision on supporting European banks as well as some backing down by ‘frau nein’ – Angela Merkel – and both have now happened. That’s why the French CAC 40 index was up 4.75%, and interestingly the German DAX was up 4.33% following the summit in Brussels. This was an unambiguously positive step in our ‘muddle through’ process and now the doubters will try to pick holes in the decisions. Also the Europeans themselves could ruin it all when the details come through, but hot on the heels of the Greek election, the Spanish bank bailout and now this, it augurs well for stocks. I am not yet saying the worst is behind us. However, when I can say this, the stock market could be up 10%!
In today’s Switzer Super Report, we review our high income stock portfolio, which is outperforming the market. We also have some stock suggestions from Geoff Wilson, and our weekly broker wrap of stockbroker buy, sell and hold recommendations. Plus, we explain why it’s possible to lend money or sell an asset to your super at below-market rates. Plus, we have our chart of the week. Enjoy!
Sincerely,
Peter Switzer
Australia’s total online spending rose 14% to $11.3 billion in the 12 months ending May 2012. This follows growth rates of 15% and 19% year-on-year in April and March, respectively.
While growth remains strong, it has slowed considerably from a year ago, when it was growing at 41% year-on-year in May 2011. The high Australian dollar has been linked to the increase in online spending. A year ago, the Australian dollar was as high as US$1.09, compared with US$1.02 at present.
Online spending in Australia is now equivalent to 5.2% of traditional retail spending (excluding cafés, restaurants and takeaway food).
While it remains a relatively small part of total retail spending, online sales growth remains considerably stronger than traditional retail, which rose a weak 0.2% year-on-year in April (on a non-seasonally adjusted basis). After seasonal adjustment, traditional spending grew at 1.6% – which is still a modest rate when compared with recent history.