After the intense election campaign last weekend, it came as no surprise that the Reserve Bank of Australia has decided to leave interest rates on hold at the record low 1.75 percent.
The RBA will have plenty on its plate over the coming months as UNCERTAINTY grips global markets. Following the somewhat surprising Brexit, and the debacle which was last weekend’s Federal election, we still don’t know which rooster is going to be controlling the chook house. All eyes will be on the RBA as they try to stave off deflationary forces affecting much of the global economy. Chuck in the instability that could by caused by the upcoming US election circus, further reductions in business and consumer confidence, coupled with the fact that the major rating agencies are sending not so subtle hints that Australia is soon to lose its AAA Credit Rating, and we are tipping that the next rate movement will be down (and maybe even all the way down to zero) over the coming years.
So how is your wealth plan equipped to deal with what could be years or even decades of extremely low-interest rates, global uncertainty, lower income, higher unemployment and lower standards of living? Are you just hoping that what might of worked in the past is going to work into this sort of future, or have you adapted and developed a new blueprint that will help you achieve even higher levels of wealth than ever before?
Not sure what to do? Start by getting educated about what is happening out there, not just what the media and governments want you to hear. Check out these three options to get informed and get prepared.