ANZ Smart Choice Super Investor Update : Member Update Winter 2013
If you're like me, you struggle to remember what you purchased last month, let alone last year or even five years ago. Chances are, like most Australians, your spending now has changed. That is, you are spending more on some items and less on others. Spending data gives us valuable clues about how markets may perform in the short and medium term. Broadly, any dollar you spend becomes a dollar of revenue for a business. By extension, a business whose revenue is growing is more likely to be profitable and offer better investment potential than one in decline. What influences our spending? Deciding what and how much you purchase involves a multitude of factors. A crucial distinction is between your 'needs and wants'. This can be broken down into necessities like food, relative necessities like a mobile phone and discretionary items like a designer handbag. Your spending decision will reflect: Capacity -- this is your disposable income plus any credit (loans). Price -- price includes both an item's perceived value (good or bad) and outright affordability. Lifestage -- there is a strong link between spending and household structure (single, couple, family) and age. Starting, then supporting a family, changes the scale and type of spending. So too, health-related spending typically rises as we get older. Confidence -- your expectations about the future can influence firstly whether you spend or save, and secondly, what you purchase. For many people, job security is a big driver of confidence. Values -- spending can reflect what you 'feel' is important, from private schooling for children to a luxury sports car. At a national level other factors affect spending. For instance, technology advances have made information technology cheaper, weather events like cyclones can temporarily inflate food prices and changes in attitude have altered smoking consumption.
Member Update Autumn 2013
Member Update Spring 2013