Those familiar winter activities such as heading to the pub for a drink with friends or watching a game of footy are going to be a welcome sight as COVID-19 restrictions start to ease.
We’ve been through the wringer and a lot of locals are yearning to get back into a routine.
Australia has made good progress stopping the threat of COVID-19. Consideration is now firmly focused on re-opening the economy. The health risks are easing but the economic risks are rising. It is a case of finding some balance.
The worst-case scenario for the public and share markets appears to have been avoided. And the government now has more options to provide stimulus if it needs to. A small $60 billion “accounting error” regarding JobKeeper cost estimates makes this possible.
For the local share market, the ASX 200 peaked at 7,139 on February 21. The vicious sell-off after the spread of COVID-19 across international borders was a frightening site for many hard-working Australians. Not to mention those contemplating retirement.
We eventually bottomed out at 4,546 on March 23 making it a 36 per cent drop from top to bottom. This was not the time to panic. It was the time to keep a cool head as we’ve seen many times before with short-term market volatility.
The market has now steadied and looks headed for 6,000 points. This is a much more digestible drop of 16 per cent from peak to trough, with more good news on the way as the economy kicks back into gear.
If you’d like more clarification on your current financial situation or how COVID-19 and share markets may impact your retirement plans then please don’t hesitate to give Muirfield Financial Services a call on 5224 2700.