It’s April already and Easter has just passed. We hope you had a peaceful and relaxing holiday weekend.
March’s biggest economic story didn’t need a share market ticker to announce itself. It was on petrol station price boards across the country. The escalating war in the Middle East drove extreme volatility in global markets and disrupted key shipping routes, pushing Brent crude up almost 70% over the month to around US$115 a barrel.
Share markets sold off hard. The S&P 500 fell about 8% in March and the Nasdaq dropped more than 10%. In Australia, the ASX 200 fell around 8% on energy price fears and inflation concerns, while the Australian dollar weakened by almost 3% to about US$0.686.
Inflation had been steadying before the outbreak of war (annual inflation slowed to 3.7% in February), but the RBA lifted the cash rate by 25 basis points in March to 4.10% on concerns the energy shock could reignite inflation pressures. Further pressure on household budgets and interest rates looks likely in the months ahead.
In this issue, we cover…
- The Iran War & Markets: There’s a particular kind of unease that creeps in when market headlines start mixing geopolitics with talk of oil prices and recessions. That feeling has been hard to avoid, as the escalating war in the Middle East spooked global markets and brought fresh uncertainty to an already fragile economic landscape.
- Downsizing with confidence: Deciding to downsize is a big life step. It is not just about moving to a smaller house. It can be about leaving behind a home full of memories, familiar streets, and routines you have built over many years.
- Selling the family home & navigating aged care costs: The transition of a parent or relative into residential aged care can be one of the most emotionally and financially challenging moments a family will face.
As always, if you have any questions, don’t hesitate to get in touch.