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Suncorp Bank

Darryl Conroy

“Prepare for Battle”

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General Advice Warning

This advice has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs.

• Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain a Product Disclosure Statement relating to the product and consider the Product Disclosure Statement before making any decision about whether to acquire the product.

Suncorp Bank

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The Game Has Changed

Market norms have broken-

down

Think Differently !

Act Differently !

Suncorp Bank

The Big Three

Europe Sovereign Debt

US Double Dip

China Economic Slowdown

Suncorp Bank

Unprecedented Stimulus

1. US $ 2.3 trillion

2. UK £ 325 billion

3. Japan ¥ 55 trillion

4. Europe € 1.02 trillion

5. China ¥ 4 trillion

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Record Low Bond Yields

Suncorp Bank

Submerging (developed)

Emerging (BRIIC’s)

Australia (piggy-in-the-middle)

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Suncorp Bank

…solvency…Much Ado About Europe

Country Gross Debt/GDP

Net Debt/GDP

Greece 181% 225%

Ireland 164% 1,255%

Spain 72% 235%

Italy 119% 165%

France 86% 279%

Germany 96% 209%

Australia 39% 106%

Suncorp Bank

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Uh Oh… 160 year high

Suncorp Bank

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Structural Change

Suncorp Bank

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Patchwork Economy

• Bad News Cycle

• Poor Confidence

• Job Insecurity

• New Taxes

• Political Uncertainty

• Adaptability

• Flexibility

• Productivity

• Innovation

• Technology

Suncorp Bank

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Negative Tourism…

Suncorp Bank

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Business Squeeze Costs rising, but sales falling...

Volume driven business to struggle

V

Margin driven business to prosper

Suncorp Bank

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Financial MarketsWealth Preservation

Cash is King

― Fixed Interest

– Stocks (Dividends)

– Commodities mixed

? Real Estate

Suncorp Bank

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Bank Funding Winners & Losers

Suncorp Bank

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A Tale of Two Cities

Port Headland Donga Parisian Chateau

Suncorp Bank

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Interest Rates

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Suncorp Bank

AUD Overvalued !

Suncorp Bank

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Aussie Dollar Commodity slide

Suncorp Bank

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Stocks – on trend

“Plans are nothing; planning is everything.”

~ Dwight D. EisenhowerSource: scrapetv.com