The tides of global macro-economics may finally be aligning against Australia, writes Ben Eltham in ABC’s The Drum online.
Superannuation was meant to be a powerful savings tool for working Australians, who would otherwise not save enough for their retirement. Yet, many workers saw their super funds shrink in the last few years. It wasn’t meant to be like this. Ben takes a look at the fear in the markets, the global economy & what this means for your super. He comes up with some doomsday scenarios.
Ben Eltham writes:
It’s not hard to construct a doomsday scenario in which a Greek or Italian bond default sets off another global credit crunch at roughly the same time as a Chinese real estate implosion causes a hard landing in the Middle Kingdom.
With most of Europe already in recession and America only slowly emerging from one, Australia would be caught with weak domestic demand at the very time our resource exports started to stall. A recession would ensue.
Even if Australia muddles through with below-trend growth, one thing’s for sure: Wayne Swan can kiss his budget surplus goodbye. We’re going to have get used to more uncertainty, more volatility, less confidence, and less growth.
If I were you, I’d be examining your super portfolio. Perhaps “balanced” is not that balanced after all.
Continue reading Ben’s piece in ABC’s The Drum here.
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