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RI Advice Monthly Market Update – September 2022

  • Global shares had a poor month (-2.5% unhedged and 3.6% hedged). As expected, unhedged outperformed hedged in a “risk-off” environment, helped by a rising USD versus the AUD.

  • Australian shares produced positive returns for August and outperformed their global counterparts, with the broad market index, the S&P/ASX 200 Accumulation Index gaining 1.2%. The best performing sector was Energy (up 7.42%), followed by Materials (up 3.90%). The worst performing sectors for the month were Property Trusts (down 4.21%), with Consumer Staples being the next worst losing 2.65%.

  • Fixed income returns for the month were again poor, returning -2.5% domestically and -2.7% globally. This was mainly driven by rising bond yields.

  • The Australian dollar took a significant hit during the month of August versus the USD, losing 2.0% of its value. Interestingly, the AUD managed to gain 2.1% against the Yen, and 0.3% against the Trade-Weighted Index.


US JOLTS (Job Openings and Labor Turnover Survey) data was much stronger than expected at 11.239m versus the consensus of 10.375m. The data suggests there are

no signs yet of a cooling in the labour market with the inference the Fed needs to be more aggressive.

The US economy added 315K payrolls in August of 2022, which was above market forecasts of 300K and pointing to broad-based hiring across many sectors.


During August, the RBA decided to raise the Target Cash Rate by 0.50% to 1.85%, the fourth consecutive hike (it has subsequently made a fifth increase in early September

of 0.50% to bring the Target Cash Rate to 2.35%).

Australia’s job market continues to remain tight, as the unemployment rate hit a new record low of 3.4% in July, beating expectations by 0.1%.

The Consumer Inflation Expectations reduced again down from 6.3% to 5.9% in August. The Melbourne Institute Index’s recently peaked at 6.7% in June. The easing expectations could reduce some flow on effects to CPI.

RI Advice Sutherland

Suite 5 level 5/3-5 Stapleton Ave, Sutherland NSW 2232

The information above, including tax, does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs.

Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.

RI Advice Group Pty Limited ABN 23 001 774 125, AFSL 238429.


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