There’s more than enough uncertainty in the Australian (and global) economy right now. Inflation. Interest rates. Unemployment. Spending. And, yes, the R-word: recession. It could tempt an investor to sell everything, put the cash in the bank and stay in bed. But by the time the coast is clear, share prices have usually regained most, if not all, of their losses.
To wit: the Covid crash of February and March 2020 was the fastest bear market in history. The ASX lost more than 35% of its value in a little over a month – which all happened before the first local community transmission of Covid-19.
And then? Well, the market started to climb. And climb. And climb. Remember, this was before Covid had escaped into the Australian community. Before the Delta and Omicron variants. Before a vaccine.
Those who waited for the coast to be clear missed all that. Indeed, those who wanted to wait for the pandemic to be over had to wait until only a few months ago, when the World Health Organisation declared just that. And, of course, that doesn’t mean Covid is gone. The price of waiting was high, indeed.
This story is from the August 2023 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2023 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
