THE ADVISER MONTHLY

VOLUME II. ISSUE 3. MARCH 2022.

LOCAL EVENTS; GLOBAL IMPACTS

Welcome to the March edition of The Adviser Monthly! Autumn is upon us, with Sydney recording the wettest start to a year ever and with experts forecasting La Nina to continue for some months.

While this is traditionally the season for things to cool down, the economic and political scene is heating up with the Federal Budget in late March and a Federal Election expected by May.

Uncertainty over the war in Ukraine has caused the markets to respond accordingly. However, it’s not all doom and gloom. While European growth will take a bit of a dent, global growth this year is still likely to be strong at around 4%. Read more about the ripple effects that will reach Australia from this crisis.

The RBA has kept rates on hold at 0.1% for March, with national house values showing the slowest monthly rate of growth since September 2020. With markets cooling, could now be the right time to take a closer look at your savings and bring that dream home into reality?

Lastly, if you have been impacted in any way by the recent floods, you may be eligible to claim your $1,000 disaster payment and other government support. Read more about this below.

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RUSSO-UKRAINE WAR GLOBAL ECONOMIC RIPPLE

When President Putin quipped that he never thinks of Australia, he could have meant it. After launching an offensive against Ukraine, petrol prices rose – and other commodities followed suit. But this is just the beginning. As the war goes on, the global economy continues to take a hit, and Australia is only one of the many countries to feel the effects. What’s at risk?

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ABOVE $2 A LITRE: THE NEW NORMAL FOR PETROL

According to the Australian Institute of Petroleum, the national average unleaded petrol price rose by 3.3 cents to a record 183.9 cents a litre last week. That was after the UK and before the US announced it would ban all imports of Russian oil. But the worst is yet to come. See how this upward trend in petrol prices affects key AU sectors.

MARKET UPDATE AND HISTORICAL PRECEDENTS

No one knows how things will unfold with the ongoing war in Ukraine, but the history of crisis events and share markets tells us that after an initial hit, there should be a decent rebound over 6 to 12 months. But what of the impact of COVID-19 and other global economic events on the status of markets? More insights here.

HOW TO CLAIM YOUR $1000 DISASTER PAYMENT

If you have been impacted by the floods, you may be eligible for disaster payments from the government. This includes a one-off $1,000 Disaster Recovery Payment from the Federal Government and the Disaster Recovery Allowance for up to 13 weeks. Read this article to find out what is currently available and how you can apply.

THE AUSTRALIAN PROPERTY SURGE

Australia’s property market has seen astronomical growth, spurred by record-low interest rates and government stimulus. According to the Australian Bureau of Statistics, the total value of the nation’s 10.8m homes grew by $2tn to a record $9.9tn last year. Which territory recorded the highest growth?

MORTGAGE STRESS TO RISE

Interest rates are already rising in many countries and are almost certain to rise in Australia. How prepared are heavily indebted households, especially those who just paid top dollar for a home in the past couple of years? Up to October last year, the interest rate did not rise. That seems to change soon.

AUSSIE ROADBLOCKS TO SAVING REVEALED

Australians have identified the cost of debt repayments, bills and everyday expenses as their greatest challenges to saving money. This was from the NAB survey results which were fielded late last year. Despite these potential roadblocks, Aussies said they were trying to save during the fourth quarter. How about you?

Thought to live by.

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Many people take no care of their money till they come nearly to the end of it, and others do just the same with their time.

JOHANN WOLFGANG VON JOETHE

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