We have a new Government, but what does that mean for investment markets?

The simple fact is our elections don't generally move markets as they do in some other countries.  The reason for this is that our major parties (Liberal/National and Labour) just don't differ enough in policy to have a huge impact.

But of course there have been some unique circumstances in the years leading up to this particular election, which may have greater impact than usual in a few key areas:

A few points which seem worthy of raising include:

• The policies of the new Government if implemented are likely to lead to smaller government, less regulation and over time improved productivity and economic growth.
• Expect a mini-budget around November that may contain more aggressive budget savings.
• The historical experience combined with the more business friendly approach of the Coalition suggests a positive share market response over time.
• The key uncertainty relates to the new Senate.

For more on how we're likely to be effected, especially with regards to investment markets, I recommend taking a look at economist Dr Shane Oliver's latest article.  As always, he cuts to the chase and is an interesting read. Click here to read Dr Oliver's insights.

If you'd like to hear more of what I have to say on the matter, click here for a recording of my most recent "You & Your Money" radio segment on 98.1FM Radio Eastern.

Talk soon,
Caren 

PS. Please don't keep me a secret.  If you'd know someone who'd enjoy this or find it useful, pass it on!