October Market Update

Within the Australian Equities market, financials and discretionary stocks performed strongly while metals & mining experienced some struggles through the month, as the China macroeconomic data continued to disappoint.

Looking ahead, we see some short-term headwinds particularly in global equities, as the Fed seeks to tackle persistent inflation with rate rises. We do however believe we are closer to the bottom of this bear cycle sell-off and are looking for opportunities to top up growth exposure in portfolios once the market has digested the risks to the global economy from excessive Fed tightening.

Regardless, we may see elevated volatility for a while, as markets come to terms with the interest rate rises year to date. The next twelve months will require a nimble risk managed approach, but longer term we see the potential for good opportunities in markets.

The Wealth Designers SMA Portfolios

All The Wealth Designers SMA portfolios performed very strongly over October, with returns between 1.9% on Conservative portfolios, through to 5.1% on Aggressive. This was broadly in line with the wider market moves over the month highlighted above. Both Defensive assets (+0.5%) and Growth assets (5.7%) contributed positively to returns.

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