FS360 Episode 16 - Market Update
The COVID-19 pandemic has had a huge impact on the everyday lives of people around the world. This has extended into the economy, but Mulcahy & Co Financial Planning Director Thayne Turley says a lot of the initial hit has been weathered and it will improve.
Speaking on the FS360 podcast, Thayne said the Australian economy did contract by 7 percent. While disappointing, he said a contract of some sort was expected due to Melbourne central being in lockdown while Victoria is the dominating state for gross domestic product across Australia.
Thayne, along with host Gavin Nash, discussed the Large Corporations of Australia report that was released, which was based on their earnings and profits up until the end of 30 June.
Thayne says the report was more positive than some in the industry had initially expected.
“Most of those beat guidance. What that really means is that analysts in the investment world expected figures to be worse than what they actually came out at,” he said.
For retail stocks like Bunnings, Officeworks, Harvey Norman etc. their financials were better than expected. Revenue and profits were still down for those business but not as bad as first thought.
Thayne continued to say that after an initial correction in Australian and international stock markets of about 30 percent, about half of that has been recovered. This means they’re sitting at about 15 percent lower than at the end of February 2020.
The Government has assisted a lot in this area Thayne says, as they did with the global financial crisis in 2008.
“The Government have come to help in terms of Job Keeper and Job Seeker, allowing some people to access their superannuation early … it’s all geared to try and help the economy get back to where it once was,” he said.
In the current market if you can hold your shares or if you have the money and can invest, it’s a good time to do so because prices are low, and you can reap the rewards down the track. As Thayne says ‘The art of investing is to buy low and sell high’. Now may be as good a time as ever to invest in the Australian Share Market.

Podcast Attendees
Gavin Nash – Director of Marketing, Mulcahy & Co
Thayne Turley – Director of Financial Planning, Mulcahy & Co
Article by Ollie Nash
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