News

"Recession, Recession, Recession! " headlines and markets are screaming. But why all of a sudden are they worried?

Overnight the Dow Jones Industrial Average fell 800 points, recording its biggest one-day fall this year. It was a reaction to data which showed the world economy slowing further, driven in part from President Trump’s trade protectionism.

The Australian stock market had a strong result in July, outperforming other developed markets.

Every time the Reserve Bank of Australia cuts interest rates, we hear a cheer from mortgage holders, and a despondent sigh from retirees and pensioners. Mortgage holders clearly benefit from reduction in the interest rate calculation on their 20 something year mortgage obligation. But for retirees and pensioners living on fixed incomes, it means less spending power. This means they think twice about taking the grand kids to the movies or meeting a friend for a coffee, and for some, they actually skip meals or cut off power. It seems unfair for a generation that always saved and ‘built a nation’.

As expected the RBA cut rates for the first time since August 2016 to an all-time low of 1.25%.