After a couple of years of smooth sailing the markets have reminded us that they don’t always head North. In 2018 volatility returned with a vengeance not seen since early 2015. Every news headline (or tweet) has seemingly transpired in a minor rally or sell-off. Markets are sensitive. A sentiment that when combined with the end of market cycle, an early budget and potentially a new government means we expect that our resilience will continue to be tested through 2019. However, we remain committed to the tenet that the patient and unemotional investor will be rewarded through appropriate diversification, pragmatic management and the implementation of good strategy.
Outside of markets 2018 was the year of Kenneth Hayne’s Royal Commission, an expose into the sorry state of affairs in corporate Australia. We saw it all, from fees for no service to charging life insurance premiums to dead people! To use the Oxford dictionaries 2018 word of the year it was a “toxic” mixture of a few rotten eggs and perverse business models. Let’s just hope that in the fall out we are not burdened with another wave of costly regulation but that any new laws are measured and considered. After all, we can not legislate against dishonesty. Corporates must reflect on their community’s expectation and legislators must acknowledge the role that these corporates can play in shaping a positive society and a positive economy. A better outcome will only be achieved with a code of conduct that all participants embrace as a way forward. From a business perspective we have welcomed new team members, celebrated retirements and other significant events of many of our very special clients and relished the opportunity to partner with new ones. In October we were honoured to be showcased as a “best practice” organisation in the 2018 Australian Parliamentary Review, a testament to the ‘charter we have set’ as a self licensed firm.
In the not too distant future we will reflect on 2018 as another defining year.
But, let’s not forget what is truly important at this time. The festive season reminds us once again of the importance of friends and family, of taking a well earned break and embracing the spirit of the season. We hope you take a brief moment to appreciate and enjoy this seasonal ‘break’ and may you all have a happy and safe new year.
Season’s Greetings – From all the Team at FinSec Partners