Last week, the Australian share market had a bumpy week, to say the least in the aftermath of the Brexit referendum vote. The Australian dollar remained resilient on Wednesday, as attention was still fixated on the continued fallout from the UK's Brexit referendum. At 5.30pm (AEST), the Aussie was trading at US74.18 cents, compared with US73.86c late on Tuesday.
Support for the currency remains in place, with commodity prices and regional shares showing some strength. Further uncertainty in our local market remains due to the still unclear results of the Federal election, held on Saturday. 

What does this mean for you?

In times of political and economic uncertainty, the best move is to do nothing. A panicked reaction driven by fear usually ends in a poor outcome for the investor. Over the past 115 years of gathered market data, the average return from the Australian share market has been 13.3%, and this period has included the Great Depression and two World Wars, among other things. Long-term persistence will beat short term speculation.
The definitive outcome of the election may have a further impact on interest rates in the coming months, as inflation stays low. Consider alternative asset classes to cash if you're wanting a safe haven. Bonds (fixed interest) historically offer a 1.5% - 2% premium over cash returns, while still offering security. 

If you would like to review your current structures, contact Dominique Schuh today on: 5482 2855