The Australian share market closed the month flat, with the All Ordinaries Index declining 0.6% in March to close at 5,861.9 points. Global shares were mixed, with the US Dow Jones Index falling 2.0%, the London FTSE falling 2.5%, the Hong Kong Hang Seng Index gaining 0.3% and the Japan Nikkei 225 Index gaining 2.2%.
March 2015 marks six years of the latest "bull market", which has seen our share market grind back from the low of 6 March 2009 to current levels. The Australian share market was up just over 10% for the 2015 calendar year (to 6 March), with the market then stabilising (since the Reserve Bank's decision in early March to keep rates on hold at a record low of 2.25%).
It was pleasing to see the results of a study released recently that compared the long-term real (i.e. after inflation) returns of various major share markets. Australia sits at the top of the table, showing in terms of one measure at least, we really are the "lucky country".
Rather than resting on our laurels, there is a lot of re-adjustment and many challenges lie ahead for our nation in order to continue to be vibrant and growing. This is, in a large part, driven by significant demographic changes that were highlighted in the Government's Intergenerational report (also released in March).
The statistic often quoted is that by 2055 there will only be 2.7 people of typical working age (i.e. aged between 15 and 64) for each person aged 65 or over. This compares with 4.5 today. How the economy (and investment markets) can cope with this change in demographics will require caerful planning.
The month of March saw the Australian Dollar decline by 2.5% with one Australian Dollar currently buying US76.06 cents.
For more information please contact Ryan Love on 1300 856 338 or e-mail ryan.love@apexpartners.com.au.
This article is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives.