Financial Insights & Updates
Welcome to the August issue of Financial Insights and Updates.
A sharp increase in inflation caused by rising costs of fuel, food and transport has sparked talks of an economic phenomenon associated with the 1970s and early 1980s: stagflation.
As war in Ukraine drives up the prices of commodities such as wheat and oil, exacerbating what is already a trend of rising inflation in much of the developed world, bank traders and other market commentators have highlighted stagflation as a potential global risk. And central banks don’t have the measures left in their kits to remedy the risk if growth stalls.
In our video this month, ‘Global Economic Prospects: Slowing Growth and the Risk of Stagflation’, the World Bank warned there were rising risks of stagflation as it cut growth forecasts and said the world economy could be headed for “a protracted period of feeble growth and elevated inflation”.
Our article ‘What is stagflation and what happens if it comes back?’ provides an explanation of stagflation and its potential impact on Australia - a must-read supplementing the video.
Other interesting articles this month include ‘You can break the pay-to-pay cycle’ where you might find tips to apply to your spending, and ‘Role-reversal - When parents are relying on you’ which deals with the delicate topic of aging parents who might need, but not necessarily want, help from their loved ones.
In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions.
Warm regards,
The Team at Nixon Financial Services Pty Ltd
Feature Booklet- Global Economic Prospects: June 2022 | World Bank Group
(Please click on the image below to view the booklet)
Feature Video - Global Economic Prospects: Slowing Growth and the Risk of Stagflation | World Bank Expert Answers
What is stagflation and what happens if it comes back?
Australia has enjoyed several decades of low inflation, but this has not always been the norm. The resurgence of inflation over the past few months has raised the possibility of wider economic problems if it is not...
How small business owners can prepare for tough times
Owning a small business gives us control over the products or services we sell, who we recruit, what we earn and, if we're lucky, even when we take holidays. Having the power to make decisions over our commercial life...
You can break the pay-to-pay-cycle
ow and then, Jodi borrowed $100 from her parents. She’s good for it, and always paid it back, but her situation was not uncommon. 5.9 million Australians live pay-to-pay. A study by Deloitte between...
The difference between TPD and trauma cover: 15 terms you need to know |
Life insurance, TPD, trauma, and income protection policies can be confusing areas to navigate. Here are some common insurance terms to help you start.
Role-reversal: When parents are relying on you
As your parents get older, your whole family will be facing lots of changes. Supporting them during this time can be challenging, with lots of choices to be made. Get some tips to help you prepare for this role-reversal…
Three things you should know about super
Superannuation, or super, is a percentage of your income put aside by your employer over your working life to help fund your retirement. It's a compulsory system in Australia that requires contributions to be made…
