September 2018 - Bongiorno Financial Update

What's in this issue?

• The fear of rising inflation and bond yields that dominated investor thinking earlier this year has faded thanks to a combination of: ongoing relatively benign inflation in the US; Fed hikes remaining gradual; strong earnings growth helping distract share market investors; trade war fears; geopolitical worries around Italy and now Turkey; and finally, slower growth outside the US.

• While such events can create their own volatility, they can also help extend the economic cycle and benefit yield-sensitive investments.

• However, it would be wrong to dismiss the US inflation threat and we remain of the view that the 35-year bull market in bonds is over.

We hope you enjoy this issue.

Kind regards,
ANTOINETTE BONGIORNO
LL.B. B.Com. CFP DipFP A.S.A.

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