logo
‘Out of fear': Members urged not to do one thing in sharemarket sell-off

‘Out of fear': Members urged not to do one thing in sharemarket sell-off

News.com.au21-04-2025

The net wealth of Australians has fallen on the back of US President Donald Trump's tariff plans.
Figures released by Chant West show the median superannuation balanced option, which has 61 to 80 per cent of the money invested in shares, fell 1.9 per cent in March.
Worst still, these funds are currently estimated to have fallen a further 2 per cent in April following the rapid fall and recovery of shares earlier in the month.
However, Chant West says this estimate could become stale quickly given some of the wild daily market movements.
Chant West figures are the first showing of the cost to everyday Australians since the US President evoked his tariff policies, stoking fears of slowing economic growth.
The share sell-off began in late March off the back of Mr Trump announcing 25 per cent tariffs on select items including steel imports.
President Trump's so-called 'Liberation Day' blanket tariffs on April 2 sent a shockwave through share markets and then a week later, a pause on some of these tariffs resulted in a market rally.
Chant West senior investment research manager Mano Mohankumar said in times of market volatility it is critical members keep in mind superannuation is a long-term investment and there are going to be periods of market weakness.
'While we appreciate that members all have different tolerance levels for seeing their account balance going backwards, the majority can afford to remain patient, even many older members,' Mr Mohankumar said.
Despite the falls, the research shows retirees with the median super fund were still 5.5 per cent up over the nine months of the 2024 financial year.
'When markets fall sharply, there is a tendency for some people to think about moving to lower-risk options or cash, with a view to moving back later, either out of fear or as an attempt to time the market,' Mr Mohankumar said.
'But far more often than not, that strategy results in a worse long-term outcome than if you stay the course.'
'Not only do you convert paper losses into real ones, but you also risk missing part, or all of the subsequent market rebound.'
Mr Mohankumar also pointed to superannuation members benefiting from diversification with the losses in the share market greater than what members are experiencing.
'Taking the full month of March as an example, we saw Australian shares retreat 3.3 per cent over the month while international shares were down 5 and 4.7 per cent, in hedged and unhedged terms, respectively,' he said.
'However, the median growth fund's loss was limited to 1.9 per cent, benefiting from diversification across a wide range of growth and defensive asset classes including alternative and unlisted assets.'
The average median superannuation growth fund has delivered an 8 per cent return on average since the introduction of compulsory super in 1992.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ambassador to talk trade amid renewed EU negotiations
Ambassador to talk trade amid renewed EU negotiations

Perth Now

timean hour ago

  • Perth Now

Ambassador to talk trade amid renewed EU negotiations

Increasing trade ties with Australia will be front and centre in a major address by the European Union's leading diplomat. EU ambassador Gabriele Visentin will speak to the National Press Club on Wednesday, as Australia and the trading bloc revive negotiations for a sweeping free-trade agreement. Long-stalled talks have resumed following the global uncertainty caused by US President Donald Trump's tariffs on exports to America, which have up-ended long-standing relationships. While negotiations began in 2018, they stalled over the EU's issues with geographic indicators. The trading bloc had been concerned by Australian producers using terms like prosecco or feta for products that didn't come from specific regions in Europe. Trade is expected to be a key point of Mr Visentin's speech, which will centre on the EU as a crucial world power. The EU is Australia's third-largest trading partner, with 450 million people in the European bloc, and is worth more than $150 billion a year. Trade Minister Don Farrell met with his European counterparts while in Paris for the OECD summit last week. He said he was confident a deal could be reached. "We've got lots of things that we can sell to the Europeans," he said. "I believe now that there's an appetite to reach an agreement on both sides. The world has changed."

Ambassador to talk trade amid renewed EU negotiations
Ambassador to talk trade amid renewed EU negotiations

West Australian

timean hour ago

  • West Australian

Ambassador to talk trade amid renewed EU negotiations

Increasing trade ties with Australia will be front and centre in a major address by the European Union's leading diplomat. EU ambassador Gabriele Visentin will speak to the National Press Club on Wednesday, as Australia and the trading bloc revive negotiations for a sweeping free-trade agreement. Long-stalled talks have resumed following the global uncertainty caused by US President Donald Trump's tariffs on exports to America, which have up-ended long-standing relationships. While negotiations began in 2018, they stalled over the EU's issues with geographic indicators. The trading bloc had been concerned by Australian producers using terms like prosecco or feta for products that didn't come from specific regions in Europe. Trade is expected to be a key point of Mr Visentin's speech, which will centre on the EU as a crucial world power. The EU is Australia's third-largest trading partner, with 450 million people in the European bloc, and is worth more than $150 billion a year. Trade Minister Don Farrell met with his European counterparts while in Paris for the OECD summit last week. He said he was confident a deal could be reached. "We've got lots of things that we can sell to the Europeans," he said. "I believe now that there's an appetite to reach an agreement on both sides. The world has changed."

Economic summit aims to firm up drooping productivity
Economic summit aims to firm up drooping productivity

The Advertiser

time5 hours ago

  • The Advertiser

Economic summit aims to firm up drooping productivity

An economic summit on lifting lagging productivity rates can serve common interests for the business sector and unions, the prime minister says. Anthony Albanese has announced plans for a productivity roundtable in August in Canberra to shape the nation's economic growth. Experts have expressed concern about Australia's lagging rate of productivity, a key economic measure of efficiency and long-term driver of improved living standards. Despite criticism previous economic summits were too slanted towards unions, Mr Albanese said outcomes from the roundtable had not been decided. He called for a mature discussion from all parties, noting it was in everyone's interest for productivity to improve. "We're a Labor government, we support unions existing ... but we will always respect both the role of business and the role of unions," he told the National Press Club on Tuesday. "There are common interests ... you don't get union members unless you've got successful employers. "It's the private sector that drives an economy. What the public sector should do is facilitate private sector activity and private sector investment." The Productivity Commissioner's most recent report showed labour productivity fell 0.1 per cent in the December quarter and dropped 1.2 per cent in the past year. The Business Council of Australia says productivity growth over the past decade has been the lowest in 60 years. Council chief executive Bran Black welcomed the roundtable, saying "lifting business investment is essential to boosting productivity, lifting real wages, creating jobs and ensuring more opportunity for more Australians". "We will continue to be very clear about policies that the business community believes will be counterproductive to improving productivity," he said. Mr Albanese said he wanted a boost to productivity, alongside other economic indicators as part of his second-term agenda. "We want to build an economy where growth, wages and productivity rise together," he said. "The starting point for our government is clear. Our plan for economic growth and productivity is about Australians earning more and keeping more of what they earn." ACTU secretary Sally McManus said working Australians must be at the centre of the roundtable. "We need to leave behind the idea that productivity is equated with cutting pay and making people work harder for less," she said. "We have a common interest in addressing the challenges we face and when we work together our country is at its best." Australian Chamber of Commerce and Industry chief executive Andrew McKellar said boosting productivity was essential for economic growth. "The business community looks forward to participating in the summit and contributing constructive and sensible ideas to address the problem," he said. Shadow treasurer Ted O'Brien said the roundtable could amount to nothing but a talkfest. "Anthony Albanese has actively sought to undermine productivity by abolishing structures to drive it," he said. "He also saddled the economy with thousands of new regulations in the last parliament. "If this change of heart by Labor is true, it will be akin to turning around the Titanic." The prime minister announced Jenny Wilkinson would become the first female Treasury secretary. Ms Wilkinson, who heads the Department of Finance, will replace Steven Kennedy, who will become the nation's most senior public servant as head of the Department of the Prime Minister and Cabinet. They will begin their new roles on Monday for five-year terms. An economic summit on lifting lagging productivity rates can serve common interests for the business sector and unions, the prime minister says. Anthony Albanese has announced plans for a productivity roundtable in August in Canberra to shape the nation's economic growth. Experts have expressed concern about Australia's lagging rate of productivity, a key economic measure of efficiency and long-term driver of improved living standards. Despite criticism previous economic summits were too slanted towards unions, Mr Albanese said outcomes from the roundtable had not been decided. He called for a mature discussion from all parties, noting it was in everyone's interest for productivity to improve. "We're a Labor government, we support unions existing ... but we will always respect both the role of business and the role of unions," he told the National Press Club on Tuesday. "There are common interests ... you don't get union members unless you've got successful employers. "It's the private sector that drives an economy. What the public sector should do is facilitate private sector activity and private sector investment." The Productivity Commissioner's most recent report showed labour productivity fell 0.1 per cent in the December quarter and dropped 1.2 per cent in the past year. The Business Council of Australia says productivity growth over the past decade has been the lowest in 60 years. Council chief executive Bran Black welcomed the roundtable, saying "lifting business investment is essential to boosting productivity, lifting real wages, creating jobs and ensuring more opportunity for more Australians". "We will continue to be very clear about policies that the business community believes will be counterproductive to improving productivity," he said. Mr Albanese said he wanted a boost to productivity, alongside other economic indicators as part of his second-term agenda. "We want to build an economy where growth, wages and productivity rise together," he said. "The starting point for our government is clear. Our plan for economic growth and productivity is about Australians earning more and keeping more of what they earn." ACTU secretary Sally McManus said working Australians must be at the centre of the roundtable. "We need to leave behind the idea that productivity is equated with cutting pay and making people work harder for less," she said. "We have a common interest in addressing the challenges we face and when we work together our country is at its best." Australian Chamber of Commerce and Industry chief executive Andrew McKellar said boosting productivity was essential for economic growth. "The business community looks forward to participating in the summit and contributing constructive and sensible ideas to address the problem," he said. Shadow treasurer Ted O'Brien said the roundtable could amount to nothing but a talkfest. "Anthony Albanese has actively sought to undermine productivity by abolishing structures to drive it," he said. "He also saddled the economy with thousands of new regulations in the last parliament. "If this change of heart by Labor is true, it will be akin to turning around the Titanic." The prime minister announced Jenny Wilkinson would become the first female Treasury secretary. Ms Wilkinson, who heads the Department of Finance, will replace Steven Kennedy, who will become the nation's most senior public servant as head of the Department of the Prime Minister and Cabinet. They will begin their new roles on Monday for five-year terms. An economic summit on lifting lagging productivity rates can serve common interests for the business sector and unions, the prime minister says. Anthony Albanese has announced plans for a productivity roundtable in August in Canberra to shape the nation's economic growth. Experts have expressed concern about Australia's lagging rate of productivity, a key economic measure of efficiency and long-term driver of improved living standards. Despite criticism previous economic summits were too slanted towards unions, Mr Albanese said outcomes from the roundtable had not been decided. He called for a mature discussion from all parties, noting it was in everyone's interest for productivity to improve. "We're a Labor government, we support unions existing ... but we will always respect both the role of business and the role of unions," he told the National Press Club on Tuesday. "There are common interests ... you don't get union members unless you've got successful employers. "It's the private sector that drives an economy. What the public sector should do is facilitate private sector activity and private sector investment." The Productivity Commissioner's most recent report showed labour productivity fell 0.1 per cent in the December quarter and dropped 1.2 per cent in the past year. The Business Council of Australia says productivity growth over the past decade has been the lowest in 60 years. Council chief executive Bran Black welcomed the roundtable, saying "lifting business investment is essential to boosting productivity, lifting real wages, creating jobs and ensuring more opportunity for more Australians". "We will continue to be very clear about policies that the business community believes will be counterproductive to improving productivity," he said. Mr Albanese said he wanted a boost to productivity, alongside other economic indicators as part of his second-term agenda. "We want to build an economy where growth, wages and productivity rise together," he said. "The starting point for our government is clear. Our plan for economic growth and productivity is about Australians earning more and keeping more of what they earn." ACTU secretary Sally McManus said working Australians must be at the centre of the roundtable. "We need to leave behind the idea that productivity is equated with cutting pay and making people work harder for less," she said. "We have a common interest in addressing the challenges we face and when we work together our country is at its best." Australian Chamber of Commerce and Industry chief executive Andrew McKellar said boosting productivity was essential for economic growth. "The business community looks forward to participating in the summit and contributing constructive and sensible ideas to address the problem," he said. Shadow treasurer Ted O'Brien said the roundtable could amount to nothing but a talkfest. "Anthony Albanese has actively sought to undermine productivity by abolishing structures to drive it," he said. "He also saddled the economy with thousands of new regulations in the last parliament. "If this change of heart by Labor is true, it will be akin to turning around the Titanic." The prime minister announced Jenny Wilkinson would become the first female Treasury secretary. Ms Wilkinson, who heads the Department of Finance, will replace Steven Kennedy, who will become the nation's most senior public servant as head of the Department of the Prime Minister and Cabinet. They will begin their new roles on Monday for five-year terms. An economic summit on lifting lagging productivity rates can serve common interests for the business sector and unions, the prime minister says. Anthony Albanese has announced plans for a productivity roundtable in August in Canberra to shape the nation's economic growth. Experts have expressed concern about Australia's lagging rate of productivity, a key economic measure of efficiency and long-term driver of improved living standards. Despite criticism previous economic summits were too slanted towards unions, Mr Albanese said outcomes from the roundtable had not been decided. He called for a mature discussion from all parties, noting it was in everyone's interest for productivity to improve. "We're a Labor government, we support unions existing ... but we will always respect both the role of business and the role of unions," he told the National Press Club on Tuesday. "There are common interests ... you don't get union members unless you've got successful employers. "It's the private sector that drives an economy. What the public sector should do is facilitate private sector activity and private sector investment." The Productivity Commissioner's most recent report showed labour productivity fell 0.1 per cent in the December quarter and dropped 1.2 per cent in the past year. The Business Council of Australia says productivity growth over the past decade has been the lowest in 60 years. Council chief executive Bran Black welcomed the roundtable, saying "lifting business investment is essential to boosting productivity, lifting real wages, creating jobs and ensuring more opportunity for more Australians". "We will continue to be very clear about policies that the business community believes will be counterproductive to improving productivity," he said. Mr Albanese said he wanted a boost to productivity, alongside other economic indicators as part of his second-term agenda. "We want to build an economy where growth, wages and productivity rise together," he said. "The starting point for our government is clear. Our plan for economic growth and productivity is about Australians earning more and keeping more of what they earn." ACTU secretary Sally McManus said working Australians must be at the centre of the roundtable. "We need to leave behind the idea that productivity is equated with cutting pay and making people work harder for less," she said. "We have a common interest in addressing the challenges we face and when we work together our country is at its best." Australian Chamber of Commerce and Industry chief executive Andrew McKellar said boosting productivity was essential for economic growth. "The business community looks forward to participating in the summit and contributing constructive and sensible ideas to address the problem," he said. Shadow treasurer Ted O'Brien said the roundtable could amount to nothing but a talkfest. "Anthony Albanese has actively sought to undermine productivity by abolishing structures to drive it," he said. "He also saddled the economy with thousands of new regulations in the last parliament. "If this change of heart by Labor is true, it will be akin to turning around the Titanic." The prime minister announced Jenny Wilkinson would become the first female Treasury secretary. Ms Wilkinson, who heads the Department of Finance, will replace Steven Kennedy, who will become the nation's most senior public servant as head of the Department of the Prime Minister and Cabinet. They will begin their new roles on Monday for five-year terms.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store