CommSec: Australia is poised for more economic growth

Despite the toughest budget in years CommSec believes that the Australian economy is relatively strong with a predicted economic growth rate between 2.75 and 3.0 percent.   Key Figures  2014 Year End  2015 Mid Year  Predicted Cash Rate  2.5% – 2.75%  2.75% – 3.25%  Share Market  5,700 points  6,100 points  Inflation  2.5% – 3.0%  2.5% – 3.0%  Unemployment 5.5% – 6.0% 5.5% – 6.0%  Australian Dollar 0.97 USD 0.95 USD

Investment Outlook

CommSec believes that despite strong gains on the share market (18% for the 2014/14 financial year) there is still a disproportionate amount of assets in cash. This means that the stock market is tipped for continued growth.

CommSec has stated that “Research by Investment Trends showed SMSF trustees still hold 25 per cent of SMSF assets in cash which equates to $143 billion,”

“SMSF investors indicate that around 31 per cent or $45 million of these holdings are ‘excess cash’, or cash that would ordinarily be invested in active assets if it weren’t for the current investor sentiment.”