Australians are being urged to stay patient as global markets tumble in the wake of escalating conflict in the Middle East, with financial experts warning against panic despite crumbling super and share portfolios.
Stocks have fallen since Donald Trump triggered the conflict, adding to mounting financial pressures already facing households across the country.
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“Everything’s just gotten more expensive over the last few weeks,” one Aussie said.
“If my mortgage goes up again, I’ve got no money,” another added.
Financial expert David Koch has devised a three-point strategy to help Australians survive the economic storm.
“The three-point plan is don’t panic,” Koch said, particularly when it comes to superannuation.
David Koch has devised a three point plan. Credit: 7NEWS
One of the world’s biggest investment providers, Vanguard, has spent decades tracking the returns of different shares, highlighting that while markets tumble and dive during conflict and uncertainty, they all eventually stabilise.
“Investing, particularly as it relates to superannuation, is a marathon, not a sprint,” Vanguard Australia’s Daniel Shrimski said.
Managers are stressing that investors can often afford to wait out the volatility.
“If you’d gone to cash during COVID, your superannuation return would be 50 per cent less than if you’d just stuck in there,” Koch said.
Investment performance on MySuper over seven years. Credit: 7NEWS
The second point is to scrutinise everyday spending and household bills, with deals and savings often available for those prepared to look.
“Go through every single major bill that you’ve got to see whether you’re getting the best deal,” Koch advised, including mortgages.
“We do expect the Reserve Bank of Australia will deliver one more cash rate hike in their May meeting,” ANZ economist Sophia Angala said.
Kochie’s final tip is support among friends and family.
“Talk to each other as a family to make sure you’re approaching this as a team,” he said.
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