Market commentary

Australian equities rose over 7% in the December quarter, with a conservatively positioned portfolio delivering above-market returns through a combination of equity gains and consistent income from fixed interest holdings, while cash reserves were maintained for future opportunities.

During the quarter the RBA increased the cash rate another 2 times by 0.25% in May and June. This took the RBA cash rate to 4.1%. Inflation remains a concern and will take some time to ease. Over the next 3 to 6 months there will be over 800,000 mortgages that will be coming off fixed rates that will now be at a higher rate which will result in some constriction in the economy with households having to meet these higher interest rates

Global markets tumbled over the quarter triggered by the COVID19 pandemic. The outbreak has resulted in the fastest ever Australian stock market crash in history, with the ASX200 index falling near 40% in four weeks from its peak on the 20th of February.