Making financial decisions about investing or your financial future is not all about the numbers, it is also about psychology. As we have seen quite clearly in the last couple of weeks, markets tend to be erratic and often irrational, but being aware of your behavioural biases can help us cope when the market turns against us.
For a while now the US and China have been in the grips of a trade-war, and events over the last week or so have seen things heat up with world share markets suffering.
I hate to disappoint you all but unfortunately, my short answer to this question is, I have no idea. Trying to pick the movement of markets in the short term is like trying to predict Melbourne’s weather. It is near on impossible.
The Reserve Bank of Australia (RBA) recently reduced interest rates from 1.5% down to 1%. They have also told us that they will consider further rate cuts if necessary. When interest rates decline it can directly impact the rate of income that investors can generate from their fixed interest assets. This current environment is generating questions from clients about how this affects them, hopefully I can help answers everyone’s questions about this in today’s blog.
Today’s blog is more of a public service announcement, designed to help educate you around recent superannuation legislation changes that may affect your insurance.