January Newsletter 2023
In this issue:
As a new year begins, we wish everyone a happy, healthy and prosperous 2023. Many families will be glad to put 2022 behind them and although challenges remain, we look forward to better times ahead. The Centaur team are excited to welcome onboard their newest team member – Amaya who will head up our front-of-house as Centaur’s Receptionist/Admin Assistant. Amaya started with the team on the 9th of January 2023 and has taken over from Caitlyn who has been promoted internally to Junior Associate/ Client Services Officer. They are also eagerly awaiting the arrival of Nick, our newest Financial Adviser who will be joining us on the 30th of January 2023.
As 2022 drew to a close, investors remained focused on inflation, interest rates and recession worries. Inflation is running at around 7% to 11% in most advanced economies, including Australia (7.3%). The Reserve Bank of Australia (RBA) lifted its target cash rate by another 25 basis points to 3.1% in December, the eighth monthly rise in a row, up from 0.1% in May. The RBA noted that “inflation is expected to take several years to return to target range (2-3%)”, and most economists expect at least one more rate increase.
High inflation and borrowing costs continued to weigh on consumers in December. The ANZ-Roy Morgan consumer price index was steady at 82.5 points in the run-up to Christmas, 26 points below the same period the year before. Slowing consumer demand and rising costs also dragged the NAB business confidence index into negative territory for the first time in 2022, down to -4.4 points in November.
But it’s not all bad news. Australian company profits rose 18.6% in the year to September, the fastest pace in five years. Unemployment remains low, despite edging up to 3.45% in November and annual wages growth was 3.1% in the September quarter, the fastest pace in a decade. The Aussie dollar lifted slightly to US68.13c in December, down 6% for the year. Iron ore prices lifted 8% over the month but were down 1% for the year, while oil prices (Brent Crude) eased slightly but were up 11.4% in 2022 as war in Ukraine disrupted supply.
Investors experienced another wild ride last year, with widespread market falls as rising prices put pressure on household budget.
If you’ve ever dreamt of having a career break and heading off on an adventure, an adult gap year may be more achievable than you think
Our success is the direct result of the actions we take and the decisions we make. Here are some ways to become more personally accountable.
As always, if you would like to discuss the contents of this newsletter please give us a call 07 5559 5760.
Hugh Robertson