The impact that the coronavirus COVID-19 outbreak will have on the global economy and financial markets is still barely predictable. COVID-19 has infected more people than SARS (2003) or Swine flu (2009-2010). Internationally, large regions have been placed into “lock down”, with residents unable to move about and restrictions placed upon foreign visitors. Domestically, businesses are responding to the double whammy of a simultaneous demand and supply shock to the economy, with the impact just beginning to be felt as measures such as social distancing are coming into force.
Global equity markets tumbled and interest rates reduced in bond markets as investors reconsidered their allocations to equities. In response, global Central Banks have responded by reducing official interest rates and by providing massive liquidity injections for financial markets to help stabilize the volatility. In many countries around the world, governments, including the Australian, are approving support packages for their economies. Equity and bond market volatility are currently illustrating the economic impact of the virus and we can only develop scenarios for the future as the timeframe for an antivirus remains uncertain.
With these uncertainties in mind, revisit your goals: if you are investing with a mid to long term perspective, how important are short term fluctuations in this context for you to address? TPT Wealth have an experienced investment team ready to manage volatility and the disruptions it causes.
Also consider your investment portfolio and look at all alternative options available to you and/or your business that can help you achieve your financial goals. TPT Wealth’s At Call Fund and Income Funds offer a regular income stream for investors looking to reduce their exposure to volatile asset classes. With a focus on balancing liquidity and competitive returns over the long term, these funds aim at adequately compensating the inherent investment risk with capital stability.
Past performance is not a reliable indicator of future performance. There is a risk that an investment will achieve lower than expected returns. An investment in the TPT At Call Fund or TPT Income Fund’s is an investment in a managed investment scheme, and is not a bank deposit. Accordingly there is a higher risk of losing some or all of your investment than is the case with a bank deposit.
This information does not take into account the investment objectives, financial situation or particular needs of any investor and you should consider whether it is appropriate for you. Please read the relevant disclosure documentation and consider seeking independent professional advice before making any investment decision or acquiring any product.