26 May 2020
Q & A with PSK
Speaker: Chris Lioutas - Chief Investment Officer
Hosted by: Paul Harrop - General Manager Advice
Date: 26th May 2020
In this live recording, PSK's Chief Investment Officer Chris Lioutas, answers client questions around investment markets and the underlying economy.
Q&A with PSK Questions
- Is Australia leading into a recession?
- How long is this market volatility is going to last?
- Who will be President of USA next year?
- Which would be worse for the world & the Australian economy, Trump being re-elected. or Biden getting up next year? What, in your view, would be the impact in either case?
- Are there other countries standing up to China as Australia currently is?
- Do you feel the government is managing a feasible strategy to enable a return to our once normal lives?
- Given the very low cash rate and the real risk that bank deposits could go to negative interest rates?
- Everybody is talking Recessions/Depression. Most countries are struggling and Australia cannot isolate itself from the world. Where are the opportunities, if only to maintain your capital?
- Global Corporate bond markets does not share the stock market optimism. Corp debt is twice the level of 2008 and in advanced economies 60% of corporate bond debt rated BBB or below. Will there not be downgrades with falling earnings and who will buy the bonds that have to be sold? Could you comment on what is going on in the debt markets and what are the risks?
- How important is the USA to Australian financial recovery. How important is the November USA Presidential election is this equation?
- Are you reviewing the funds you recommend/offer to your clients in light of their performance in these times and, if so, what metrics are you applying in that review? And over what timeframes are you looking?
- With Australian portfolios having significant weighting to financial assets including the major banks - considering the large amount of possible write offs that the banks have provided for in their balance sheets, is it considered that they have adequately taken up all of the risk?
- I assume the current value of our superannuation has dropped, but will recover in time, however, as we continue to draw on it through this it will not recover entirely. Is this a reasonable assumption?
- How do you see the current situation regarding China working out? Barley is in trouble, there are threats against other parts of Australian trade to China. What would you advise our political chiefs to do?
- What impact do you feel that the Fed flooding the market with more cash will it have on the local market. Is it time to pull back into hard assets and more tangible stock?
- What should we expect from dividends from now to 30 June and then for next year?
- Probably the most questions we had revolved around valuations of different sectors, how about we finish off with a quick run through of our views of each sector – 30 seconds each?
- Australian Shares
- US Shares
- European shares
- Emerging markets?
- Australian residential property
- Australian Retail / Commercial property
- Australian Office property
- Australian industrial property
If you’d like to discuss any of the points raised, please do not hesitate to contact us on 9324 8888.
PSK Financial Services Group Pty Ltd (ABN 24 134 987 205), PSK Financial Services 23 Pty Limited (ABN 88 624 480 628), PSK Financial Services 24 Pty Limited (ABN 81 626 044 264), PSK Financial Services 25 Pty Limited (ABN 65 629 095 932), trading as PSK Financial Services, is an authorised representative of Charter Financial Planning Limited, Australian Financial Services Licensee and Australian Credit Licensee 234665. Information contained in this video is general in nature. It does not take into account your objectives, needs or financial situation. You need to consider your financial situation before making any decisions based on this information.