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Thursday, 2 April 2020
Recently trending Why we’re not buying the market yetDrawdown reductions needed for retirees - UPDATED POLICYWhat are the possible economic effects of COVID-19 on the world economy?Note to Australia: be more French in the COVID-19 warHow $200 billion is magically created
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The Australian market bounced back last Friday (13th) and Monday (16th) tempting analysts to call the bottom of the coronavirus scare. This is too early as the impact on companies is not yet evident.
During the GFC, in the face of rapid falls in super balances, the minimum drawdowns required for pensions were reduced by 50% to help preserve overall retirement savings. It's time for a repeat.
In a widely-quoted scenario using estimated attack and fatality rates of coronavirus, about 0.07% of the population of the US dies. That's about 230,000 people, which the market is not ready for.
Andrew Baker is well-known as a superannuation consultant. Now working in the UK, he was caught in France with his family and is in lockdown. He worries Australian policy was too slow.
Australia is in a relatively good position to borrow $200 billion, with the RBA using printed money to buy bonds in the market. The long-term consequences are better than the alternative.
This detailed analysis of infections, deaths, drugs and vaccines includes an optimistic scenario: perhaps US and Australian infection numbers will peak in early to mid-April with a decline after.
Howard Marks is the largest investor in the world in distressed securities. What does he think after checking the virus positives and negatives, and how much has he changed his mind in only a few days?
Bear markets caused by recession fears follow a pattern, but we have never seen anything like coronavirus. If financial stimulus and medicine prove ineffective, all bets are off.
The turning point in this crisis will be when the number of new COVID-19 cases starts to decrease. Until then, can we mitigate the damage to businesses and the economy so that we can snap back?
Over the long term, the technology sector has a vital role to make the essential transition to a more sustainable global economy and a cleaner planet. We highlight a few names with strong prospects.
Many trustees of SMSFs have become complacent about vague Investment Strategies, but fund auditors and regulators are paying far more attention. Ensuring your fund complies requires some simple changes.
The wide range of measures introduced due to COVID-19 include relaxation of some superannuation rules, giving some people access to cash. But watch other rules as it's not a super open-house.
Businesses and directors must take steps to deal with new restrictions as a result of COVID-19. Here are six actions all companies should consider in these trying times.