Seven reasons Australia is likely to avoid recession from Trump’s shock (14/04/2025)
Hello Fellow Investors
Shane talks about how Australia would fare with the US possibly going into a recession. Shane talks about how US market commentators are currently forecasting a recession, and there are some warnings of a global recession to come. Shane suggests Australia and the global economy should be able to avoid a recession.
Shane points out that Australia has been resilient in regard to recent recessions, and only 5% of our exports go to the US and the bulk of that should be able to be sold elsewhere. Shane also mentions that the RBA will be in a good position to cut rates.
This Brisbane-based financial planning business believes that Trump’s policies may provide a good chance to invest in the market, and if there is a recession in the US or Australia, it could provide a better opportunity to invest in the market.
The key takeaway from this article for financial planning is that things are more optimistic for Australia than they seem right now. It could be a good time to come into this financial planning practice to talk about investing.
Joshua Napier (Associate)
The 4 types of life insurance: what they are and when you need them (16/3/2022)
Source (https://www.zurich.com.au/latest-news/magazine/types-of-life-insurance)
Hello Fellow Investors
Investors take risk, that’s part of the investing. But being ready for risk, that means having insurances. This article from Zurich in 2022 does a good job explaining Life, Total permanent Disability (TPD), Trauma, Income protection and why you need them.
If you or your family & friends are interested in understanding the various types of coverage available and the basics of how they work, I highly recommend reading it.
While this article does a good job explain what cover there is it doesn’t specify how much coverage you might need or whether you need it at all. For personalized advice, it’s best to consult with a financial planner.
Our Brisbane Financial Planning practice is more than happy to discuss your options regarding Life, TPD, Trauma, and Income Protection insurance.
The key takeaway from this article is that any of these covers could be right for you and you should speak to a financial planner to work out what cover is right for you.
Joshua Napier (Associate)
Oliver's Insights Investment markets and key developments (17/3/2025)
Source (https://www.amp.com.au/resources/insights-hub/weekly-market-update-14-03-2025)
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 (Associate)