| Hello The last few days has seen the return of volatility to stock markets in a big way. These volatility spikes go hand in hand with surprise shocks to markets and for many of us quickly brings back the feelings of Covid, GFC, European Debt Crises, Tech Wreck and so on where markets react hard on negative sentiment, fear, and uncertainty. With fear and uncertainty reigning, the default reaction of markets is to sell first and ask questions later. Markets will remain highly sensitive – an example is overnight large swings of around 5% between negative and positive simply on a false headline around Tariff reduction rumours. What we do know is that markets ultimately value facts and degrees of certainty. Calm will return to markets and when we have increased certainty around how Tariffs will affect global economies and the businesses within, the market will value these appropriately, for example cash flow, earnings growth, profitability and so on. The timing of such is unknown and nobody knows when the bottom has been reached. As an example, the Australian Government yesterday announced their modelling showed trade changes would trim only 0.1% off Australia’s economic growth in 2025 and add only 0.2% to inflation. The Australian market has largely followed the US and has sold off based on a much worse economic estimate. As an economic comparison, Cyclone Alfred was estimated to hit GDP by around 0.25% for the quarter and add to inflation. – Many of you will be thinking whether you should be doing anything about your financial position. Questions to be asking yourself (and with your advisor) could be: – – Does a Tariff regime affect my personal circumstances? Is my job ok, what happens to my mortgage and so on? – Have any of my circumstances or strategy changed? – Do I have the right level of risk exposures and can I still sleep at night ? – Is this a permanent shift in global economics and therefore markets and if so, what does it mean for my asset allocation, or not? – Are some of the outcomes good for me – will my home loan rate go down faster this year, will petrol become cheaper, and can I buy high quality investments at cheaper levels? It is important to make any material decisions or changes (including whether that may be to stick to the existing strategy) to your financial strategy in a calm and thoughtful manner. Knowing what your options are important to ensure you have control over your financial circumstances to be able to make informed decisions. There is no doubt that what is occurring will be a historically impactful event that will have various ramifications on global economies. The market will change and it will become clearer as time goes on what this change may be. There will be sectors that are winners and equally losers. At the moment the market will react on an hourly / daily basis as the situation evolves and Snelleman Tom will be constantly monitoring the events as they unfold, seeking external guidance from fund managers and economists, and considering the effect on your portfolios, asset allocation decisions and any safety mechanisms. We are here for you to support you through these changes and for some this will mean great opportunity in the short term to set up for the longer term and for others it may mean simply checking in that how your affairs are set up are robust to handle these types of events. We have attached a paper we have written to provide some information about the Tariff affects and market reactions Read More Please reach out to your advisor to discuss your personal circumstances by clicking the below button. Get In Touch with your Coeus Adviser Kind regards Coeus Advisers Pty Ltd ABN: 43 629 335 593 Liability Limited by a scheme approved under Professional Standards Legislation Coeus Financial Pty Ltd ABN: 47 629 337 604 |AFSL: 513012 Coeus Advisers Pty Ltd and Jodie Ryan are Authorised Representatives of Coeus Financial Pty Ltd Level 3 Mosaic Offices, 826 Ann Street, Fortitude Valley QLD 4006 | PO Box 360, Fortitude Valley QLD 4006 Phone: 07 3910 5675 Copyright © 2025 Coeus Advisers Pty Ltd, All rights reserved. You are receiving this email because you opted in via our website. Our mailing address is: Coeus Advisers Pty Ltd PO Box 2107 Ascot Brisbane, Qld 4007 Australia Add us to your address book |
Market Update
- April 15, 2025
- News