The strong start to 2023 has continued despite the shock waves caused by the collapse of Silicon Valley Bank and Credit Suisse. Although equity markets did sell-off at the time, it was short-lived as major markets finished higher over March. The one area of consensus appears to be the view that the issues were largely unique to those institutions.
More broadly, the short-lived banking crisis does indicate that the rapid rise in interest rates is beginning to bite and things are starting to break. The big question to be answered over the coming months is the extent of the economic impact of higher interest rates. But quite perversely, the market is likely to view bad economic news as a positive that should temper inflation and an eventual turn in the interest rate cycle.
We are on the cusp of another Federal Budget and this one will certainly see changes to superannuation and taxation in Australia as the Government seeks to navigate structural fiscal challenges. There is no point in speculating now, but I will update you after the budget.
Finally, we are also moving towards the end of the financial year, which is always a busy time for looking at superannuation and pension strategies ahead of tax time. We will be in touch but if you have anything on your mind, please do reach out so we have time to plan!
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.