Invest
Volatility will continue with no vaccine
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
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.

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.
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.”
About the author

About the author


Economy
Australia’s exports rise to fourth-largest on record
The high price of iron ore has offset Chinese sanctions, with Australia recording its fourth-largest trade surplus on record, official figures have revealed. ...Read more

Economy
Coalition commits to climate resilience as new report bares shocking cost of inaction
Australia has announced that it is joining 118 countries in signing two global initiatives to plan for the risks associated with climate change, as a new report reveals the cost of extreme weather i...Read more

Economy
How CSIRO plans to turn landfills into a billion-dollar industry, tripling jobs
Australia’s national science agency is saving plastics, glass, paper and tyres from landfills and turning them into a billion-dollar industry that is set to triple in job creation, an official state...Read more

Economy
COVID consequences ‘will come home to roost’
Markets are enjoying an easy ride despite the economic damage wrought by COVID-19, but “there will be a reckoning”. ...Read more

Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more

Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more

Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more

Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more

Economy
Australia’s exports rise to fourth-largest on record
The high price of iron ore has offset Chinese sanctions, with Australia recording its fourth-largest trade surplus on record, official figures have revealed. ...Read more

Economy
Coalition commits to climate resilience as new report bares shocking cost of inaction
Australia has announced that it is joining 118 countries in signing two global initiatives to plan for the risks associated with climate change, as a new report reveals the cost of extreme weather i...Read more

Economy
How CSIRO plans to turn landfills into a billion-dollar industry, tripling jobs
Australia’s national science agency is saving plastics, glass, paper and tyres from landfills and turning them into a billion-dollar industry that is set to triple in job creation, an official state...Read more

Economy
COVID consequences ‘will come home to roost’
Markets are enjoying an easy ride despite the economic damage wrought by COVID-19, but “there will be a reckoning”. ...Read more

Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more

Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more

Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more

Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more