Overall, market returns in the September quarter were marginally positive with the S&P/ASX 200 Index finishing at 5,436 points and up +4.9% over the last 12 months. On a 12-month forward looking basis the ASX 200 is now trading on a 16.2x multiple, relative to long term averages of 14.2x and is paying an average dividend yield of 4.5%.

While the period for seasonal share market weakness (August to October) so far has passed without a major mishap, we remain cautious on shares in the short-term as event risk remains high for the months ahead including ongoing debate around the US Federal Reserve and European Central Bank, issues around Eurozone banks and the US election on 8 November.

However, after any short term weakness, we anticipate shares to trend higher over the next 12 months helped by ok valuations, continuing easy global monetary conditions and moderate global economic growth.

To keep you up to date with developments I’ve included the current AMP Capital Market Update addressing these areas in more detail. Please click here to read the article.