October 2020 Bulletin

The months of September and October have historically been volatile for world share markets. Overlay this with Covid-19, the U.S & China trade tensions and the upcoming US election in November, there is probability for further volatility in the coming months.

Volatility presents opportunity. Declines in equity prices are quite common and have most often been relatively short. Importantly, they cannot be timed perfectly in either direction. Worldwide, governments are collectively working to provide financial relief and economic stimulus.

Long-term investors should look to ride out these fluctuations, hold cash on the sidelines and when the inevitable dip in world markets occurs, take the opportunity to add to your investment portfolio. Equity markets tend to recover long before the economic picture.

Jobkeeper Update

Changes to the JobKeeper stimulus measures took effect on 28 September 2020.

Businesses will be reassessed in accordance with revised eligibility criteria. For those that continue in the JobKeeper system, a reduction in the payment amount and a new two-tiered payment system for full-time and part-time employees will apply.