Episode 45: The financial market surge following Scott Morrison’s election win

This week we’re discussing the impact the shock Liberal election win has had on financial markets. Interestingly, there has been a strong rally of lower-quality stocks early this week, while leading stocks were sold off quickly.

Since Labor’s policies would potentially dent bank earnings by reducing the capital gains tax discount, limiting negative gearing and imposing touch restrictions and higher bank levies on mortgage brokers, the surprise Liberal win has helped banks gain ground. Following the Liberal win, banks, industrial businesses and larger corporations on the ASX appreciated a significant relief rally.

Listen in for more information on the impact the election has had on financial markets; and investing in businesses that are subject to cycles, including changes of government.

This Week’s Investor Exchange Round Table Covered:

  • Joel shares his insights on what to expect from a financial perspective with the Liberal Party win, including small business and personal tax rates. (6:02)
  • Now that the election has passed, the property market will see an increase in confidence among buyers and sellers. Listen in for Brett’s insights on the short-term expectations in the property market following the election. (31:44)
  • Louis explains his philosophy on measuring success, and staying motivated and focused. Listen in for his strategy for creating clear KPIs and using a balanced scorecard approach in both work and at home to increase professional, financial and personal success. (38:23)

You Cannot Be Serious:

Last week you may have noticed Snapchat released a few insane new filters, including one that changes the appearance of your gender. One young man in the UK tested out the filter by creating a fake tinder profile using the female Snapchat version of himself, and wound up with over 1650 profile likes and up to 400 matches!

News.com.au logged a few quotes overheard at the polling booths, including: “Dad, I thought we were going boating”; and “I can’t believe the Greens are handing out printed ‘how to vote’ flyers, that’s not very environmentally friendly”!

Listener Questions:

Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.

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The Investor Exchange Theme Music: “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.

Image Source: The Australian