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Volatility will continue with no vaccine

  • August 12 2020
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Invest

Volatility will continue with no vaccine

By Grace Ormsby
August 12 2020

Economies the world over won’t return to stability while the threat of second and third waves of COVID-19 could still occur, super fund members have been warned.

Volatility will continue with no vaccine

Volatility will continue with no vaccine

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  • August 12 2020
  • Share

Economies the world over won’t return to stability while the threat of second and third waves of COVID-19 could still occur, super fund members have been warned.

Volatility will continue with no vaccine

In an update to members from MTAA Super CEO Leeanne Turner, she flagged that while some positive signs are occurring in markets, there’s still a long way to go before economic recovery will be able to occur.

“The impacts of COVID-19 on businesses, households and the broader economy will last beyond the immediate fallout of the pandemic,” she warned.

“And the threat of secondary breakouts, such as those that have reintroduced lockdowns in Melbourne, shows that the road back may not be smooth.”

Despite upheaval to economies still occurring worldwide, Ms Turner did flag a “strong rebound in markets” in the June quarter following a sharp sell-off in the March quarter.

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This was fuelled by monetary and fiscal stimulus, with central banks and governments the world over moving to support economic activity.

According to the CEO, “This has increased confidence and has helped stabilise economic activity and financial markets.”

Domestically, “the economy remains weak”, she said.

Record-low interest rates have not helped, and government intervention via economic assistance packages can only go so far.

“Borders are closed, unemployment has trended higher and some industries and geographies are suffering due to a lack of trade activity,” Ms Turner highlighted.

“Until a COVID-19 vaccine is successfully created, the chance of heightened market volatility and possible negative returns will persist.”

Volatility will continue with no vaccine
Volatility will continue with no vaccine
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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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