Australians are encouraged to review their financial plans due to expected growing global market volatility, according to financial firm Dixon Advisory.
In particular, those preparing for retirement should make sure what quality investments would be best and fit their long term plan.
This would include looking at their debt levels, exposure to risk areas, such as Australian residential property market, and a solid understanding of their cashflow needs.
At the same time, Dixon’s head of advice, Nerida Cole, warned that volatility would be driven by the next round of Sino-US trade talks. On top of this, the markets would continue to be affected by Europe’s Brexit dilemma, the US government shutdown and China’s stimulatory measures aimed at countering slowing growth.
“The recent falls across Asian sharemarkets has resulted in some quality companies trading at attractive prices. Despite recent slowing in the Chinese economy, Asia’s emerging middle class is expected to support ongoing growth,” Cole said.
“We also expect some growth in Australian shares for 2019, but waiting until at least February – or even potentially post Federal election – may provide more clarity around lending and bank regulation.”
Additionally, the greatest risk to the Australian economy might be the downturn in property which would be expected to deepen and start impacting on the broader economy, with the banks being tougher on approving loans due to scrutiny from royal commission and with stricter regulations which would also have a flow on impact to property.