Economic update: Market ups and downs
The share market has started 2022 with a fizzle, falling more than 8%. It’s on the back of some concerning economic data. Inflation is higher than expected, which means interest rate increases this year now seem likely, and it appears omicron has dented business confidence.
So, what does this mean for retirees?
Return of Inflation
Return of inflation
The news that inflation grew more than expected in the September quarter has spooked retirees and homebuyers equally. And rightly so; inflation is bad news for retirees who are trying to balance spending today, while being responsible for the future. And for homebuyers, the return of inflation may mean increasing interest rates and mortgage stress.
So, what has caused the inflation spike? And what will happen if prices continue to rise? More importantly, what can pre-retirees and retirees do now to protect themselves from inflation risk?
Evergrande: A timely reminder about risk
Just a fortnight ago, most of us hadn’t even heard of the Evergrande Group. But recent developments have changed that.
Just in case you missed it, Evergrande is a Chinese property developer that has run out of cash. It is probably going to default on its debt obligations. The big problem is, Evergrande is massive and its finances are entwined with financial institutions right across the world.