Dear %%first_name%%,
The stock market has been itching to go higher, but investors are still waiting for confirmation that global financial markets are in safe hands. The markets gave Ben Bernanke’s Jackson Hole speech a tick of approval, and now we’re waiting for Europe, and that’s what makes me anxious, as I talk about today.
Also in the Switzer Super Report, Paul Rickard has updated our high-income stock portfolio and it’s up! So take a look at what’s inside and what Paul recommends. Lance Lai shows us how gold has made a significant break on the charts. Plus we have our weekly broker wrap as well as information on making sure you get your death benefits right. Have a great week.
Sincerely,
Peter Switzer
The Reserve Bank of Australia (RBA) is expected to keep interest rates on hold when it meets on Tuesday.
However a rate cut is likely sometime in the months afterwards, as a slowdown in China, falling prices for mineral exports, and the continuing eurozone crisis weigh on the outlook for domestic economic growth, economists say.
All 13 economists surveyed by AAP said the RBA would not move the cash rate at its September board meeting and 11 expect there will be a rate cut in the last three months of the year.
The RBA has kept its cash rate at 3.5% since its June board meeting, when the key rate was cut by a quarter of a percentage point.
“We think there is still scope for the RBA to lower rates further, admittedly it seems pretty reluctant, so we think they probably won’t do very much in the next few months," RBC senior economist Su-Lin Ong said.
Some economists are starting to predict that there could be an interest rate rise in early 2013.
CMC Markets chief market strategist Michael McCarthy said the interest rate cutting cycle could end if Europe could successfully back away from a financial calamity and the US economy improved.