Despite relatively resilient economic data, falling inflation and major central banks either pausing rate hikes or signaling that they are close to the rate peak, financial markets have seen broad-based losses over the quarter. This was driven by large bond yield increases, which impacted valuations of equities and other rate-sensitive asset classes. This was a classic case of goods news is bad news, where more robust economic data, particularly in the US, prompted US Federal Reserve officials to remove forecasted rate cuts in 2024 and 2025.
At some point, the impact of higher interest rates will be felt and will translate into poor economic data. While the economic news will be pessimistic, this will be an infection point on the interest rate cycle as rates peak, and the outlook moves towards rates moving lower.
Closer to home, rising energy prices have been squeezing many households, triggering a response from Federal and State Governments to ease the burden. You may have received a letter notifying you of an energy rebate. The article below summarises what is available and how to check if you are entitled to any relief.
Are You Getting Your Energy Rebate?
Cyber security is still top of mind for many, and I have updated my post on tips to protect yourselves from scams that are becoming increasingly more sophisticated. The article below includes a way to shut down access to your credit file (Credit Savvy) as a precaution to identify theft.
Protecting Yourself from Cyber Criminals
The take-up by clients of our new Wealth portal using MyProsperity for storing and referencing essential documents has been great. Our primary objective is to enhance data protection by providing you with a secure way to collaborate with us instead of email.
Finally, as we approach the busy run-up to Christmas, it is an opportune time to welcome Phillip Kirk, who has joined Wealth Simplicity as Associate Adviser with me here in Sydney. Phil will be helping me with advice implementation and will be an additional point of contact should you need any assistance.
Bye for now!
The information provided should not be considered personal financial advice as it is intended to provide general advice only. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions.