Australian recession Q&A
Key points:
– The risk of recession globally and in Australia has increased with ongoing central bank rate hikes.
– Signs of faster wages growth has seen the RBA turn more hawkish. The risk of recession here is now around 50%.
– Recession would mean higher unemployment, less job security & a likely further leg down in shares & home prices.
– By Feb we may need a Taylor Swift lift to help “shake it off”!
– Share market volatility is bad news but the best approach for most investors is to stick to a long-term strategy.