It just feels like each week is running into the next right now with little delineation between workdays and weekdays and I know I’m not alone in feeling this way. It’s hard to believe it’s time for another week that was review! So here’s what you need to know in advisor this week:
1. Low-interest rates are here for the long haul. It’s likely the RBA will keep the cash rate low for a while to come with no improvement expected in inflation or labour market conditions expected for some time, Mortgage Business reports.
2. More JobKeeper clarification. Deborah Jenkins, ATO deputy commissioner, confirmed in a My Business webcast this week that businesses that met the JobKeeper eligibility criteria upon their enrolment will continue to receive the $1,500 wage subsidy per fortnight even if they experience a boost in revenue in subsequent months. More here.
3. You know what they say about playing with fire? ASIC has reported a surge in the number of new retail investors entering the market, signalled by the rate of creation for new accounts, which shot up by 3.4 times over March and April. Volatile conditions are making for dangerous conditions: “Even market professionals find it hard to ‘time’ the market in a turbulent environment, and the risk of significant losses is a regular challenge,” ASIC said. More here.
4. How is this going to play out? CMC Market’s Michael McCarthy has scoped out 4 possible scenarios we could see as we emerge from COVID-19. The full article is over on the AFR but the low down is a V-Shaped recovery, better in 2021, recession now or reinfection and depression. The V is the most optimistic and probably most unlikely – what we absolutely want to avoid is reinfection and deep depression so keep social distancing and we can all do our bit to get out of this.
5. Early super withdrawals near $10bn. More than 1.2 million Australians have sought to withdraw super funds early, news which comes as the AFP investigates more than 100 cases where users have had details on their applications accessed while others have had their super accounts accessed. A timely reminder to update your passwords and get up-to-speed with phishing tactics to protect your personal information. More here.