19th Annual Client Awards 2015

The post 19th Annual Client Awards 2015 appeared first on MAS Wealth Management - Financial Planning Gold Coast | Financial Planners Biggera Waters | Investment Advice Gold Coast | Mortgage Elimination.

The people of Greece have spoken … and the banks remain closed, until Thursday at least. The only thing that keeps the ATM’s dispensing €60 a day is the emergency liquidity assistance still being offered by the European Central Bank (ECB). How long this will continue for is hard to tell – central banks can only lend money against high quality collateral, which is becoming harder to find in Greece these days. Overnight the ECB increased its requirements for collateral in exchange for continuing to support Greek banks. It’s not the ECB’s role to bail out any bank – this situation needs to be solved at the political level.

On that note, the resignation of finance minister Varoufakis is seen as a positive step, sources close to the last round of negotiations have been reported as saying that his abrasive nature was unhelpful at the very least.

Chancellor Merkel and President Hollande held a joint press conference overnight before the emergency summit in Brussels, asking the Greek prime minister to come back with an offer to break the current impasse. It is reported that France, Italy and Spain are impatient for a deal, whilst Germany and other Northern European nations are more content to let Greece suffer the realities of bank closures, cash shortages and isolation.

Prime minister Tsipras has met with other Greek political leaders and reached consensus on a negotiating strategy committed to debt restructuring. It will be interesting to see the response he receives in Brussels in light of the differing attitudes mentioned above.

Our share market fell yesterday, but by less than most commentators expected and this theme played out in European exchanges overnight also. Our market is tipped to open higher today, erasing all of yesterday’s losses. Short term speculation must be tiring.

One thing we know for sure is that the Greek situation still has a lot of uncertainty and will continue to capture news media attention as it unfolds.

Domestically, the ANZ job adverts index rose 1.3% month on month, which is considerably more than estimates and a sign that a more constructive federal budget might be translating into an increased level of labour demand. Hopefully this news will capture some positive media attention.

The post The People Have Spoken – The Latest on the Greek Debt Crisis appeared first on MAS Wealth Management - Financial Planning Gold Coast | Financial Planners Biggera Waters | Investment Advice Gold Coast | Mortgage Elimination.

Greece’s financial and economic woes have been going on for a number of years now, however recent events have thrown a spotlight on the situation once again. Whilst short-term speculators choose to worry and make a lot of noise, it’s important for us as long-term investors to take a more rational view of what’s happening.

1. The current Syrzia-lead Greek government was elected in January promising voters an end to austerity, higher pensions, wages, public spending, and that their Euros would be untouched. Despite months of negotiations, an agreement was unable to be reached on another bailout package. Greece now finds itself ‘in arrears’ on a euro 1.6 billion loan repayment to the International Monetary Fund (IMF). Last ditch attempts to broker a deal continue and the situation remains very fluid.

This weekend Greece has a referendum on a proposal to accept or reject the most recent bailout package. Essentially a ‘No’ vote equates to continued bank closures, a euro 60 daily limit on ATM withdrawals, a further collapse in an already depressed economy, a potential exit from the Euro currency and ultimately the European Union (EU).

A ‘Yes’ vote means banks reopening and the locals once again having access to their savings, staying with the Euro, a change in government (again) which probably paves the way for a more realistic combination of debt forgiveness and agreement to reforms.

Which one would you choose?

2. A ‘No’ vote is unlikely to cause contagion to other economies around Europe – Spain, Italy, Portugal and the like are all in a stronger economic position now than they were 3 – 5 years ago and the European Central Bank (ECB) has the authority to assist member nations via additional Quantitative Easing (QE). Greece represents 2% of Euro area GDP and just 0.3% of world GDP

3. The majority of Greek debt (~90%) is now owned by other government agencies, with the European Financial Stability Fund (EFSF) being the largest holder, followed by the ECB and the IMF. European banks hold very little in Greek debt, as opposed to the first crisis closer to the start of the decade. A default would therefore have a much smaller impact on the Eurozone.

Markets will likely remain volatile whilst the situation remains unresolved – fortunately the referendum will bring the crisis to a head quickly. This will hopefully pave the way for a more prosperous and compliant Greece and a recovery in world share markets.

The post Greek Economic Crisis Update appeared first on MAS Wealth Management - Financial Planning Gold Coast | Financial Planners Biggera Waters | Investment Advice Gold Coast | Mortgage Elimination.

Thank you to all who joined us on the day and made it such a success. We treasure these celebrations as they provide a wonderful opportunity to catch up with you all in an informal and relaxed setting and to celebrate our fellow investor’s successes as they achieve their financial milestones.

Download a copy of the newsletter for more information and find yourself in the photos!

Newsletter 2013 Final

The post 17th Annual Client Awards 2013 appeared first on MAS Wealth Management - Financial Planning Gold Coast | Financial Planners Biggera Waters | Investment Advice Gold Coast | Mortgage Elimination.