Market Update: What’s Driving Share Markets Right Now

Key Points

  • High valuations, AI bubble concerns and uncertainty about interest rate cuts are creating short-term volatility.
  • Despite this, company profits remain strong and there are no signs of recession, which continues to support markets.
  • For long-term investors, timing markets is very challenging and can be costly. Having an appropriate long-term investment strategy and patience should reward investors.
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2024-25 Federal Budget Update

Labor’s third Budget, unveiled on May 14, prioritised alleviating the cost of living for Australians. Treasurer Jim Chalmers emphasised its responsibility in balancing household support with economic stability. Key highlights include:

Tax Cuts:

  • Stage 3 tax cuts, effective 1 July 2024, will provide all tax payers with tax savings.
  • The savings range from $354 for those earning $30,000 to $4,529 for incomes exceeding $190,000.
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