May was another action-packed month, kicking off with the federal election, RBA announcements and rounding off with our annual Cranage offsite, with the Mornington Peninsula (and Autumn) as our backdrop. 

In recent years we’ve come to understand the value of taking our team offsite for future planning. As leaders of an ever-evolving business, we’re both inspired and committed to cultivating a growth mindset, and reinforcing it in ourselves, so we can continually strengthen our objectives with concrete policies.

Within our team, we see mindset (growth vs fixed) as the bridge between potential and performance. Professionally and personally growth is often uncomfortable, as it requires us to embrace uncertainty and be willing to change or pivot to live our values and/or trademarks. 

Alongside growth, technology and property took centre stage for most of our working sessions.  Industry leaders are using tech to grow faster, manage admin more efficiently, and deliver better client outcomes. At CFG, we plan to embrace these advances in technology (with security at the forefront), so we can assist as many clients as possible moving forward.  We want to be part of the solution, to meet the enormous demand for advice, in a continually shrinking pool of Financial Advisers in Australia.  

The appointment of Practice Manager, Kim McDonald, has been crucial for Cranage as we look to drive growth and technology efficiencies… and she has well and truly hit the ground running!  We look forward to sharing these innovations and improvements with you throughout the year. 

Finally, with the end of the financial year fast approaching, we’d like to share these Top 10 Strategies for preparing for 30 June 2025.

From our family to yours, 

Regards, 

Ben, Sam and Laura Cranage 
 

Economic and Market Observations 
 

Monthly Market Update, April 2025

Key Themes:

• Equities Were Mixed: Following a significant downturn at the beginning of the month due to tariff announcements, the Australian equity market rebounded strongly, achieving a solid return. In contrast, international shares did not fully recover their earlier losses.
• Bond Prices Rose: Both Australian and international bond prices increased as tariff concerns and fears of an economic slowdown led investors to anticipate lower interest rates in the near future.
• Australian Dollar Appreciated: Despite considerable volatility stemming from expectations of shifting trade dynamics, the Australian dollar appreciated in April.
• Oil Plummeted while Gold Rose: Oil prices dropped significantly due to expectations of an economic slowdown and reduced global trade, while gold prices increased amid the prevailing uncertainty.
   

Click here to read the full report.
 

Quarterly Update, March 2025 

Key Themes:

• Equity Markets Start the Year Off Poorly: In the US, the S&P 500 and NASDAQ experienced significant declines as investors shifted to less risky stocks. This impacted the AI sector significantly, following China's DeepSeek disrupting the sector. The 'Magnificent Seven' companies' decline greatly affected market performance, with Tesla falling by over 31%. European equities outperformed the US, while emerging markets benefited from a weaker US dollar and falling US Treasury yields. 
• Trump 2.0 Effect: In Q1, Donald Trump's threat of widespread tariffs created market uncertainty. Fears that these policies would induce re-inflation or economic recession weighed heavily on investor sentiment. Trump's sporadic and unpredictable policy announcements further compounded investor confusion.
  Bond Prices Increased: Global fixed income markets rose due to heightened uncertainty. Investors moved from riskier assets, such as equities, to defensive assets like bonds. The increased risk of economic downturn or recession has led markets to price in more interest rate cuts than previously anticipated, further suppressing bond yields.
• US Dollar Weakness: After strengthening in Q4 202854, the US dollar weakened in Q1 2025 due to concerns about the US economy. Reduced economic prospects made the US less attractive compared to economies with higher growth potential.
   

Click here to read the full report.

Lending:  Another rate cut creating momentum in Melbourne... 
 

With another rate cut of 0.25% (to RBA cash rate of 3.85%) providing further mortgage relief, borrowers are rapidly gaining confidence in the market resulting in a flurry of preapprovals and reviews.  Cranage lending is loving seeing a renewal of the local property market, with Melbourne holding the most auctions of any capital city in recent weeks with a preliminary auction clearance rate of 73.7%, compared with 61% for the same time last year.  A noticeable increase on last year and following the announcement of a second rate cut.

Senior Lending Consultant, Jerome Mendis, impressed that ‘if clients are paying anything over 5.8% for home loan or 6.00% for an investment loan to proactively book in a review.  We encourage clients to touch base to ensure they’re not paying ‘loyalty tax’ to any lender, as opposed to maximising RBA cuts in full.’  

Contact our expert lending team today; 

t:  03 9097 6000 
e:  jerome@cranagegroup.com.au 

That’s all for Cranage News this quarter!   As always, let us know if you have any questions or feedback.  Wishing you a great (long) weekend.  Stay warm and well. 

The team at Cranage Financial Group.