US markets boosted by hope, Asia's wealthiest opting for independent advisers

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US stocks end week on a high….Gold rush before autumn? …..UK interest rates could rise before next year….and Asia’s super-rich pick independent financial advisers…

US Stock Market Ends Week On A High
All three of the main barometers of the US stock market ended last week on highs, showing year-on-year gains for the first time in 2014. However, there are suggestions that these gains owe more to hope than the more tangible markers we prefer to see. The US housing market is showing positive signs and globally there have been some good trends, but the US Commerce Department is set to revise the GDP figure for the first quarter of this year, from a small increase to a slight decline. Read the full story.
 
UK Interest Rates Set To Rise – Says Outgoing Bank Deputy
With an overheated housing market, many have been expecting the UK’s historically low interest rate of 0.5% to rise this year in a bid to cool things down – but this has so far been ruled out by the Bank of England’s Governor Mark Carney. However, speaking on the BBC over the weekend, his deputy Charles Bean, who is leaving the Bank next month, says that raising the interest rate sooner than next year would enable a more gradual increase towards somewhere in the region of 3% over the next few years. The main concern over an increase is that the economy is only starting to look more stable and a sharp rise would damage consumer confidence. Read the full story.
 
Gold Price to Rise If India Changes Rules
The global price of gold could increase by autumn if the new Indian government make a quick move on an election promise. A rule, introduced last year by the previous administration in a bid to cut inflation, meant a rise in duty and limits on how much gold could be imported for re-export. However, the effect on inflation hasn’t been great and the rules have created a black market for gold in India. Reversing the rule could be one of the first economic decisions made by the new government. Read the full story.
 
‘Easy Money’ Boosts Dividends for Investors
Having hoarded money during financial uncertainty, many companies are now using healthy cash reserves to reward shareholders and also to make acquisitions, helped by low cost borrowing that’s now available. US companies are leading the way but Europe and Japan are also seeing increases. Overall, dividend payments were up almost a third in the first quarter of this year and acquisitions are gathering pace. Read the full story.
 
Wealthiest Investors Choosing Independent Advisers
There’s a growing trend among wealthy investors in Asia towards paying for independent financial advisers to help safeguard their multi-million dollar portfolios. The investors are choosing to pay agreed fees to advisers rather than work with wealth managers and banks who are commission based. Read the full story.
 
Islamic Bond Issues Set to Hit $130 Billion This Year
It’s one of the fastest growing sectors of global finance and now the signs are that Islamic bonds will start to become more affordable, in line with traditional sectors. The bonds, called sukuk, are restricted by religious principles and are popular in Middle Eastern countries but many western economies are looking into the benefits of the bonds and enable their use to become more widespread. Read the full story.
  • viewsxew on 26/05/2014 10:57:29 AM

    The article regarding the trend amongst Asia's HNW towards advice from non-aligned wealth advisers carries some interesting encouragement for Australian financial planners who are embracing the move away from 'commission-based' remuneration for their advice services.
    Whilst one report/ article doesn't suggest that this move has gained significant momentum in Australia, it is an indication that the trend will continue - and adds strength to the call by some professional associations in this country, to move from a product distribution model to an advice profession model.

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