financial planning & lending specialists 03 9686 4976

Those of a certain age will remember the classic 1990s hit song by UK pop band D:ream titled “Things Can Only Get Better”.

You might be wondering what this has to do with investment markets and the headline-dominating Covid world that we live in. Well as time goes by, both the economy and investment markets will recover, even if these look different to what could have been imagined last Christmas. We may even have more setbacks, such as happened to Victoria, but the human spirit and a strong sense of community will get us back on track. That is the way of the world.

For those who reside in Victoria, it has been a tough time that has been exacerbated by a steady stream of negative news flow. The isolation of a Stage 4 lockdown is quite confronting, even for those who had anticipated the tough measures. In many instances, the ongoing reinforcement of the impacts of the virus on our lives has obscured what we believe is a growing light at the end of the tunnel – both at a community level and in an investment context.

While Victoria is undoubtedly facing the greatest challenge in its history, other parts of the globe incurred the full impact of the virus and have come through the other side. The scenes of absolute horror and devastation in Italy from just a few months ago will be forever etched in the minds of many. Yet Italy is now emerging from the worst of the virus and there is a general sense in the population that things are getting better.

Closer to home, Victoria is already orders of magnitude better off than what we saw in Italy, New York, London, France and Spain. Victoria is also likely to recover much more quickly than any of those places. Indeed, that is what was happening throughout May and much of June, and the rest of the Australian economy is rebounding as people adapt to a new normal.

To give some perspective on this, in the second half of July when new Victorian cases were rapidly escalating, payroll jobs were being quickly regained in NSW, Queensland, South Australia and Tasmania. Retail sales continued to improve and we saw that in areas where restrictions had been eased there was an increase in home loan commitments.

People have a tendency to want to get back on track and this spirit will ultimately shine through, regardless of how long the restrictions last. In important global economies, this has manifested as a familiar pattern of improving payrolls, industrial production and retail sales. This bodes well for Australia.

Meanwhile, investment markets have continued to march higher. Domestic shares recorded a fourth straight monthly gain in July. And global shares are broadly higher than from a year ago. New cases appear to have slowed in the US and hopes for a vaccine continue to rise following reports of positive early-stage trial results.

Which brings us back to Victoria and the D:ream classic hit...

After the initial lockdown, Victoria was showing signs of recovery, but this was thwarted by a second wave of infections. Originally a club hit, “Things Can Only Get Better” reached only number 24 in the UK chart in January 1993. The band then changed direction and the song was remixed to become a bigger hit, spending four weeks at number one in January 1994. Now that community transmission is declining, we can envisage Victoria improving in leaps and bounds. Restrictions will eventually be removed, though in the final wash-up, things may look a little different. Online sales will continue to grow and people will eventually return to work, even if from home. Markets will continue to recover…and yes, things can only get better. 

Stay healthy and safe. 

Insurance Claims & The Media - What you need to know

Unpaid insurance claims have been big news recently, highlighting why it's so important to have your personal policies reviewed by a licenced adviser regularly...


I’m a first home buyer – are there any benefits or discounts available?

Getting into the property market as a first home-buyer is tough – there’s no denying it. So what is the government doing to help?


How spending affects borrowing

There is a common misconception that your borrowing capability is related solely to your income, however most people’s outgoings quickly follow their increasing pay-packets. In a time where many people’s lifestyles revolve around instant gratification, lenders are now taking a more responsible approach to lending and investigate genuine spending habits as well as factoring in possible future interest rate rises.


RBA Holds Rates, Will Your Lender?

At its March meeting, the Reserve Bank of Australia elected to keep the official cash rate on hold at 1.5 per cent. However, changes are happening in the market...


Avoid The DIY Will Curse

A DIY Will Kit may seem like a cost effective approach to your Estate Planning now, but if not executed correctly, your family could be faced with significant legal expenses, long delays and unnessisary stress. Is that really the legacy you want to leave behind?


What is stamp duty?

In a nutshell, stamp duty is a tax imposed by the government when you purchase a property. Nothing to do with postage!


What you should know and do before auction day

it's important you're organised and have your finances inline before heading to an auction.


Why Banks Are Raising Rates

Learn why banks are raising rates outside of the RBA's decisions on interest only loans. Should you switch to principle & interest repayments?


RBA leaves rates on hold at the first meet of 2017

The Reserve Bank of Australia didn't move the official cash rate at the first meeting of 2017. Meanwhile, many lenders have been adjusting their interest rates outside of RBA movements this summer.



We're already into the second week of Feb! Have you started on those ambitious New Year resolutions and saving plans yet? Learn how to set goals the S.M.A.R.T way...