Market Watch provides a monthly update on the investment themes that influence returns from well diversified portfolios like ipac’s.
August was a difficult month for share markets as worries in the US and, in particular, Europe unsettled investors. In this environment, fixed interest assets performed better. A key part of Market Watch is its summary of an important issue relevant to investment markets. This month, we highlight that below the volatility lies the continued good performance of companies.
Global and Australian companies are growing their profits. For example, two thirds of Australian companies that had reported full year earnings by the end of August posted a higher profit in 2011 compared to 2010. US companies are also outperforming. It is the strength of companies that provides confidence in the medium-term outlook for sharemarkets and share-based portfolios.
To discover more read Market Watch review of August 2011.