Hello Fellow Investors
Shane does an excellent job outlining the uncertainty of the current market and the likelihood of a recession. He highlights the uncertainty due to Trump’s focus on tariffs, driven by his belief that other countries are “ripping off” the US. On a positive note, Shane presents data suggesting a slight decrease in consumer concern among Australians, as fewer people now view saving or paying down debt as the best use of their money. Its an excellent read I would encourage you to read it.
From a financial planning perspective, caution is beneficial, but fear is not. Many new clients who come to Fleming Financial Planning became fearful during COVID-19 and moved their Super funds from investments (e.g. Stocks/property) to cash. This decision had significant impacts, as investments have increased greatly since COVID began in 2020. For example, the S&P 500 has increased by over 60% in value since pre-COVID (as of 19/3/2025). It is about making logical decisions, not emotional ones.
The decrease in Australia’s consumer concern is positive for the economy, indicating that people feel more comfortable spending money rather than saving. In financial planning, we always focus on the future and our clients’ retirements. If people are comfortable investing outside of the bank, in general Fleming Financial Planning would consider the opportunity of salary sacrificing funds to Super.
Overall, the takeaway is to balance caution with optimism when making investment decisions. If you are making big decisions, talk to a professional.
Joshua Napier