Economic Update and Outlook for Quarter 1 – 2024

Our research partners, Innova Asset Management, have released their Quarter 1 – 2024 Market Commentary report.

As we reflect on the first quarter of 2024, the stock market has been really interesting, driven by new technology and changes in the economy. Two main things stood out during this time: the significant changes brought by new AI technology in tech companies, and how unsure everyone was about interest rates going up or down. Together, these factors greatly impacted how the stock market moved, how investors felt, and the overall view of the economy.

Here’s a quick look into the dynamics that shaped the financial terrain:

– The stock market in 2023 was mainly driven by breakthroughs in AI technology and changing views on interest rates.

– The largest US tech companies, often called the “Magnificent 7,” were a big reason the market did well.

– NVIDIA stood out due to its focus on AI and big projects by companies like Microsoft.

– The US economy stayed strong, thanks to people spending a lot of money, making it less likely for the economy to shrink.

– Global stock markets, especially those focused on technology like the Nasdaq, did really well in 2023.

– After reaching high levels in 2022, inflation (or the cost of living) in rich countries started to decrease, changing what people thought the Federal Reserve would do about interest rates.

– There’s a growing difference in value between the most prominent US companies and other stocks, with indexes like the S&P 500 and Nasdaq showing higher than usual prices.

Watch the full video breakdown below, or read the attached commentary here on the current key issues, a comprehensive review of Quarter 1, and how we are positioning our Innova Active portfolios for clients.

Investing In Your Future: The Shift From Viewing Financial Advice as a Cost To An Investment

When it comes to financial planning and seeking professional advice, many people are often deterred by the costs associated with it. The common perception is that financial advice is an expense, and one that can be avoided to save money. However, it’s crucial to change this mindset and start considering financial advice costs as an investment in our future rather than just a cost. Here’s why:

Financial Guidance Can Secure Your Financial Future

The primary reason to view financial advice as an investment is that it can have a profound impact on securing your financial future. Financial planners are experts in helping you make informed decisions about your money, investments, and financial goals. By engaging with their expertise, you’re taking steps to ensure that you’ll have a more stable and prosperous financial future. In this context, the cost of financial advice is an investment in building a secure and comfortable life for you and your loved ones.

Maximizing Returns on Investments

One of the key roles of a financial advisor is to help you make wise investment decisions. They can provide insights into opportunities, strategies, and asset allocation that can lead to higher returns on your investments. These returns can significantly outweigh the cost of the advice, essentially turning it into a profitable investment.

Risk Management and Wealth Protection

Financial advisors also play a crucial role in risk management. They help you diversify your investments to reduce risk, source insurance policies that protect your assets and income, and create contingency plans for unforeseen events. By paying for these services, you’re essentially safeguarding your wealth and minimizing potential losses.

Tailored Solutions for Your Goals

A financial advisor creates a personalized financial plan tailored to your unique goals and circumstances. This customized approach ensures that your financial resources are directed toward achieving what matters most to you. In essence, you’re investing in a roadmap that leads you to the life you desire.

Financial Education and Empowerment

A significant part of financial advice involves education. Financial advisors don’t just make decisions for you; they explain the reasoning behind them. This educational component empowers you to make more informed choices in the future, reducing the risk of costly mistakes. Investing in financial advice is, therefore, an investment in your financial literacy and capability.

Long-Term Financial Stability

Building long-term financial stability often requires expert guidance. Financial advisors assist in managing debt, creating savings plans, and planning for retirement. By paying for their services, you’re investing in your own financial stability and peace of mind for years to come.

Tax Efficiency

Tax planning is an essential aspect of personal finance. Financial advisors can help you make tax-efficient decisions, potentially saving you a significant amount of money over the years. This means the cost of their advice is offset by the tax savings you gain.

Emotional and Behavioral Support

Emotions can significantly impact financial decisions, often leading to irrational choices. Financial advisors offer emotional and behavioral support, helping you stay on track during turbulent financial times. This aspect alone can save you from making costly emotional decisions that could erode your wealth.

A Holistic Approach to Financial Wellness

A financial advisor takes a holistic approach to your financial wellness. They consider all aspects of your financial life, from investments to insurance to estate planning. This comprehensive approach ensures that every aspect of your financial health is in good shape, and you’re not missing out on critical opportunities for growth and protection.

It’s essential to shift our perspective and start viewing financial advice as an investment in our future. While there’s no denying that there is a cost associated with seeking professional financial guidance, it’s crucial to recognize that the benefits far outweigh this expense. By investing in financial advice, you’re securing your financial future, maximizing your returns, managing risk, and gaining the knowledge and confidence to make informed financial decisions. So, the next time you consider seeking financial advice, remember that it’s not just an expense; it’s an investment in a brighter, more financially secure future.

Ready to start investing in your future? Call us on (07) 3371 0866 and begin your pathway to a brighter financial future with a Collective Wealth Advisers expert.

Your Guide to our Practical Investment Philosophy

Our Practical Investment Philosophy 

In the ever-changing world of financial planning, finding a strategy that fits your goals and safeguards your future matters most. At Collective Wealth Advisers, we’ve built a unique investment approach that combines expertise, smart risk management, and a wide array of investment options.  

Let’s dive into how we make this philosophy work for you. 

Smart Moves Backed by Experts 

Picture this: a team of seasoned Investment Asset Managers dedicated to studying the market for your benefit. At Collective Wealth Advisers, that’s the team in your corner! We work closely with these independent experts who dig deep into market trends, so your investments are always based on solid research. This means more informed decisions, less emotional responses and better chances of achieving what you’re aiming for. 

Riding High While Staying Strong 

Investing isn’t just about chasing the highest returns; it’s about managing the risks too. Our way of doing this is by adjusting your investment mix based on how the market behaves. We call it Dynamic Asset Allocation. It’s like having a weathervane that changes direction when the wind shifts. This strategy helps us make the most of the good times and cushion against the not-so-good ones. 

More Choices, More Control 

Think of us as your premium investment toolkit with various tools at your disposal. We’re not stuck on a one-size-fits-all approach. We offer you a range of investment options—direct shares, managed funds, ETFs, annuities, and more. It’s about creating a mix that suits you, your current situation and gives your portfolio the best chance to meet your unique goals. 

The Pillars We Stand On: 

Your Future Comes First: We’re not in this just for today. We’re here to help you build a future that aligns with your life goals and financial objectives. 

Clear as Day: We believe in transparency. You’ll always know the where, the why and the how when it comes to your portfolio structure. After all, it’s your money! 

Rolling with the Changes: The financial world doesn’t stand still, and neither do we. We keep an eye on what’s happening so we can guide your investments through the ups and downs. 

Knowledge is Power: We’re not here to just manage your money; we want to help you understand it too. We offer resources and guidance to educate and empower you, and help you make better decisions. 

At Collective Wealth Advisers, we’re not just financial planners. We’re practical partners guiding you on your unique pathway to a better future. We’re here to help you make smart choices, manage risks, and take control of your financial future. Welcome to a world of investing that’s not just about numbers—it’s about you. 

Today, tomorrow…but always together! 

The Rise and Rise of Conscious Investing

Investing has always been a great way to generate wealth and secure our financial future. Yet the world is growing closer and information is more accessible. It’s clear that investing has an impact far beyond financial returns.

Investors are realising their role in shaping an ideal future and their ability to enact positive change.  

What is conscious investing?

Conscious investing, also known as responsible investing, ethical investing, sustainable investing, or socially responsible investing (SRI), is a strategy that endeavours to generate not only financial returns, but positive social or environmental impact. In other words, it’s about investing with a higher purpose beyond making money.

This can take on different forms:

– Some investors might decide not to invest in businesses that harm society or the environment.

– Investors may choose to avoid companies that seem unethical. Examples include those involved in gambling, tobacco or firearms.

– Some investors make an effort to invest only in companies that benefit society. They can include those involved in renewable energy, healthcare, low carbon emissions, affordable housing, and other similar fields

When people care about certain issues, they can choose to invest their money in companies that support those same values. This is called conscious investing, and it can make people feel good about where their money is going. It might even encourage more people to start investing because they know their money is making a positive difference.

Conscious investing can also be a driver of positive change in the world. By investing in companies that support things like sustainability and helping people in third world countries, investors can make a difference. It can also send a message to companies that they need to care about more than making money. This generation cares about social and environmental issues and so investing in companies that share those values is one way to make a statement.

But here’s the kicker… conscious investing can also be good for business. In fact, companies that make social and environmental responsibility part of their day-to-day practices are tending to outperform their peers over the medium to long term

What are your options?

At the end of the day, the drive to partake in the conscious investing revolution all comes down to your priorities and values And for those who are wanting to focus in this area, the opportunities for ethical investing are there already.

There are several managed funds and ETF’s that are purposefully designed for conscious investors.  They will only invest in companies with positive social and environmental outcomes. There are also funds that will focus on not holding companies that are seen as harmful in their portfolios. These funds can be accessed by most investors as a practical way to invest according to their personal values.

Investors can also seek out these companies themselves by researching and evaluating their impact, although this could be a time-consuming project.

Don’t forget – this style of investment can be established as a personal investment structure but can also be used for your retirement savings and superannuation.

The good news is that conscious investing no longer means sacrificing financial returns for your beliefs In fact, many companies with stronger social and environmental policies are also strong performers financially.

Where to now?

If the thought of conscious investing gets you excited, there are some steps you should consider before making the leap:

– Understand your personal motives for conscious investing. Make sure you are not following the latest trends.

– Seek advice from a professional investment adviser or financial planner.  They are in the best position to discuss the pro’s and con’s of conscious investing and offer an alternative point of view.

– Understand that the best financial plans are long term. Focus on this aspect for your portfolio and remember that all investing involves some form of risk.

Ready to start investing with purpose? Consider conscious investing and make a positive impact on the world while securing your financial future. If you’d like to speak to a professional investment adviser or financial planner, contact us at Collective Wealth Advisers, today.