NKP - October Update

Market Commentary

As you would be aware - the Reserve Bank Board lowered the cash rate to 0.75% last week. This is now a record Australian low for interest rates. It is the first time we have ever seen the official cash rate below 1%. 

The RBA has been concerned about a number of issues in Australia, including: a slow down in employment growth, consumer spending not increasing off the back of recent tax cuts and global economic concerns.

We see this as good news for people borrowing money - but not so good for people investing it! This continual decline in rates means that most people can expect lower returns on their portfolio for longer, especially those that have a significant amount in defensive assets. 

However, we believe that people should not change their risk profile solely in response to this factor. Defensive assets play an important role in capital protection. The more defensive assets you have can limit your upside for returns, but it can also signifcantly help protect your portfolio on the downside as well. 

Given the volatille world we live in (think US/China Trade Wars, Brexit, drone strikes in the Middle East, struggling economies in Europe etc) it is critical that your portfolio reflects your appetite for risk. At each review, we discuss and confirm this with you, however if you feel your risk profile has changed significantly since your last review, please contact us so that we can discuss this and assess if a change to your portfolio is necessary.

New website - coming soon!

We are about to upgrade our website shortly (something we have been meaning to do for a while!). We will let you know when this is up and running. In the meantime, we would like to collect a number of testimonials to put on the new website. If you believe you have had a positive experience with John, Andrew and the team at NKP - we would be greatly appreciative if you could send a paragraph on why you are a happy client of our business and how we have made a difference. We will only use initials on the website to protect your privacy.

All testimonials received will go in to a draw to win a $100 Westfield Gift Card. 

Clients attending Chicago the Musical

Our annual musical event is almost here!! For the clients who are attending Chicago this Sunday, here are some final details:

Date: Sunday 13th October

Time: 1.00pm

Venue: Capitol Theatre - Sydney

Meeting Point: Andrew, John and the team will be at the Capitol from 12.15pm. We will be at the bar on the second level (same area for anyone who attended last year). To get there - please proceed past the box office and merchandise area (left hand side facing the theatre) and walk up the stairs.

Please arrive by no later than 12:45pm. If you are running late - please call Andrew and we will leave your tickets with the box office.

Contact number: Andrew - 0422 650 854  

Details about the Capitol Theatre and how to get there can be found on Capitol’s website:

https://www.capitoltheatre.com.au/

Office news

The office is anxiously awaiting the birth of John and Allison's third child. John has advised us that the baby could come at any time in the next couple of weeks at which point he will be out of the office for three weeks. If you have anything urgent coming up in the next month that you need to speak to John about - please email or call him this week to discuss. Otherwise, the team is here to look after you in his absence. 

If you have any questions or would like to submit a testimonial - please email us at client@nkp.net.au

All the very best,

Andrew, John and the team at NKP