Atchison Consultants

With many economists expecting the Reserve Bank to start cutting interest rates in early 2025, returns on term deposits could feel the pinch. Private credit is an alternative, but those pursuing this investment option will need to do their homework – thoroughly.

One of the most bitterly divisive US presidential elections in history has investors on edge. While it will ensure market volatility, long term it’s the economy that will dictate how markets perform.

While retirees understandably fret when markets resemble a roller-coaster ride, their fears are misplaced. A new study shows that over the past three decades markets have performed strongly, the GFC, COVID, economic downturns and geopolitical events notwithstanding.

It was lance corporal Jones of Dad’s Army fame who immortalised those two words, ‘don’t panic’. It’s exactly the right advice for those in retirement who are seeing equity markets see-saw due to geo-political events, profit-taking and rising Japanese interest rates.

Despite continuing strong economic data for Australia, markets have forecast significant earnings downgrades, and results have been mixed so far. But a main highlight – CBA’s record $10 billion profit – may not be enough to improve investors’ outlook on the banking sector, analysts say.

The recent re-embrace of active equity management by Australia’s sovereign wealth fund may herald a shift in the active-versus-passive debate, industry leaders said, as market volatility prompts greater dispersion and allows active management – at the right price – to prove its worth.

While commodities proved a safe haven for investors in a brutal 2022, completing a rare two-year run at the top of the asset class returns table, Atchison consultant Kevin Toohey warns against expecting a repeat performance.

Investors are flocking to risk stocks in the hope of an early Fed pivot following a better-than-expected US inflation report. While it is too early for a pivot, according to Atchison Consultants, the longer-term outlook for fixed income is positive.