The best news I’ve heard in recent weeks (and I’ve unearthed a few good’uns I can assure you) was that the Centre Alliance Party should hold the balance of power in the next Senate and they’d oppose Bill Shorten’s unfair policy on tax refunds linked to franking credits for retirees not receiving a pension.
Before addressing your franking credits investment strategy, let me run through the good news vibes that all investors should be happy about. I’ll list these positive views for stocks below:
- Chinese economic data is on the improve in many areas. Last week we saw consumer prices rise by a big 2.3% over the year to March, up from 1.5% in the year to February. Exports in the first nine days of March surged 39.9%, compared to the same period last year, which might be a good early indicator that the economy is on the rise again, following some strategic stimulation.
- US banks have reported better than expected with this reporting season. Some experts are thinking the overall results could come in positive rather than the expected negative showing that has been tipped.
- The CEO of the world’s biggest bank, Jamie Dimon of J.P. Morgan Chase says it’s not crazy to rule out a recession for three years!“It [economic growth] could go on for years,” he added. “There’s no law that says it has to stop. We do make lists, and look at all the other things: geopolitical issues, lower liquidity. There may be a confluence of events that somehow causes a recession, but it may not be in 2019, 2020, 2021.”
- A nice market signal happened over the weekend, with the S&P 500 index passing through the 2900 level, which is seen as a point of psychological resistance. The S&P ended the week at 2907, for a weekly gain of 0.5%. The next target traders are watching is the closing high of 2930 on the S&P. The all-time high was an intraday 2940, reached on Sept. 21. (CNBC)
- The New York Times (not a pro-Trump organization) came out with this over the weekend: “Treasury Secretary Steven Mnuchin said on Saturday that he believed the United States and China were nearing the final stage of trade negotiations, moving closer to what he said would be the biggest change in the economic relationship between the countries in 40 years.”
- While the International Monetary Fund cut its growth figure for the world economy from 3.6% to 3.3% for 2019, the G-20 meeting of Finance Ministers and Treasurers has given the thumbs up to the second-half of this year.
This is how Associated Press reported the conclusions from the meeting of the top 20 countries’ finance ministers: “Global finance leaders gathered from the spring meetings of the International Monetary Fund and the World Bank agree that the global economy has lost momentum this year. But they expect growth to pick up in the second half of 2019, as central bankers ease up on interest rates.”