‘Walking a tight rope’: Recession fears wipe billions off the market

Fears that steep interest rates rises could trigger a global recession have led to the worst day for the Australian sharemarket since the start of the COVID-19 pandemic, with investors wiping about $80 billion from the ASX.

Investment director at Investors Mutual, Anton Tagliaferro, said years of ultra-low interest rates had caused complacency, and markets were now adjusting to the likelihood of central banks raising interest rates significantly as they try to get inflation under control. Regal Funds Management portfolio manager Mark Nathan said investors feared central banks could spark a global recession by raising interest rates to tame rising inflation, and these worries had sparked heavy losses on share markets. “It really comes down to the risk of how quickly rates move and whether that means we go too fast, and we end up in recession,” Nathan said.

SuperRatings executive director Kirby Rappell said the median balanced fund was on track for a negative return of -4 to -5 per cent decline this financial year, after last year’s returns of almost 18 per cent. Rappell said the longer-term average returns from super since the early 1990s remained close to unchanged. “Despite the fall potentially being a bit of a shock, it has had no real impact on the return since 1992 of 7 per cent,” he said.

Super has already plumetted 25% this year. Nothing about it in press!

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

ASX enters correction plunging 3.6pc as billions wiped from marketStubbornly high US inflation and fed fears have triggered an indiscriminate sell-off in Australian shares as markets reel from their worst day since March 2020.
Fuente: FinancialReview - 🏆 2. / 90 Leer más »

Aussie share market wipes more than $110 billion in value plungeThe Australian share market has shed more than $110 billion in value as investors eye the implication of Wall Street entering a "bear market". Much more to come too. for long range forecasting WTF is going on!!!!! If values of companies are dropping, then something has to give if wages are going up.
Fuente: 9NewsAUS - 🏆 10. / 72 Leer más »

Bloodbath: $110b wiped off ASX after Wall Street sinks into bear marketThe Australian sharemarket has plunged more than 5 per cent in early trade putting it on track for its worst day since March 2020, when COVID rattled markets. 'Be fearful when others are greedy and greedy when others are fearful.” Warren Buffet. Plenty of bargains in the market today. Apparently the Herald's disgrace is now featuring on US television! BevanShieldsMustResign Auspol
Fuente: smh - 🏆 6. / 80 Leer más »

Bloodbath: $110b wiped off ASX after Wall Street sinks into bear marketThe Australian sharemarket has plunged 5 per cent at the open after Wall Street’s benchmark S&P 500 officially entered a bear market. 'Be fearful when others are greedy and greedy when others are fearful.” Warren Buffet Many bargins to be had in the market today. Thank God interest rates will keep going up
Fuente: theage - 🏆 8. / 77 Leer más »