Each month we provide a wrap of the biggest issues in personal finance. In March the markets had a terrible couple weeks on the back of a potential “Trade War” between US and China. Closer to home and there were a few worrying signs in the property market, particularly Sydney. There was also an interesting report on four corners about the state of super in Australia.
The Trump Trade War
Last week the US markets suffered their worst week in more than two years as Donald Trump announced plans to impose up to $60 billion in tariffs on Chinese imports. This followed on from an announced $40 billion worth of tariffs on steel and aluminium imports into the United States. These proposed tariffs sent shock waves around the globe as fears of a trade war between China and the US grew. Fears have tapered off a bit this week as China have showed signs that they are not looking for any sort of war.
House Prices Always Go Up…Right?
Moody’s Analytics, part of the global ratings agency, is expecting the NSW housing market, particularly Sydney, to suffer a “correction” in the year ahead. While Moody’s expects prices to fall across Sydney, it says performances will vary depending on different types of dwelling as well as geographic location. “We expect house prices across Greater Sydney to fall by 4.2 per cent in 2018, after a 12.8 per cent gain in 2017,” it says.
This article discusses how we are getting complacent about house prices and are not adequately prepared for a downturn.
The Superannuation Report
Four corners did a report on superannuation that is well worth a watch. In it they discuss how millennials are being left behind with a financier saying their future was “ … bleak. They are facing Game of Thrones; winter is coming”. The report also shows how some employers are underpaying their employees and how the current structure fails those in the gig economy badly.
The report is not that surprising given 40% of young Australians have no idea what their super balance is.
At Plenty we can help you figure out if you are currently getting a good deal and help you find a lower cost fund.
The information contained on this page is of a general nature and may not be appropriate for your personal circumstances. You should obtain personal financial advice before acting on this information.