March 2022 – Please be aware of scammers falsely representing AMP Capital. AMP Capital is aware of an ongoing scam operation targeting customers and the broader community, offering inflated interest returns, available through fictitious investment vehicles, titled AMP Capital High Yield Fixed Return Global Market Fund. Through the use of phishing emails and phone calls, malicious operators are attempting to entice them to invest in a false product that features AMP Capital’s branding. Please be aware this is a not a legitimate product from AMP Capital.

AMP Capital does not approach potential customers via electronic direct mail (EDM) nor does the company solicit personal or financial information via email. If you are concerned that you may have been targeted by scammers, please contact us on 1800 658 404 from 8.30am to 5.30pm Monday to Friday (Sydney time). More information on scams can also be found on the ACCC’s website Scamwatch.

Economics & Markets

Five investment markets impacted by a big week in Australia

By Diana Mousina
Economist - Investment Strategy & Dynamic Markets Sydney, Australia

It’s been a big week in Australia, with the central bank meeting and the government handing down one of the most significant Budgets in our history. For a detailed analysis of our thoughts on the Federal Budget, you can read a note from Shane Oliver and I. Here, we take a look at the outlook for some asset classes after a busy few days.

1. Cash and term deposits

The RBA kept the cash rate on hold at 0.25% at its October meeting, though we thought there would be a cut to 0.1%. We think it’s likely the cash rate will fall to 0.1% at the central bank’s November meeting, meaning cash and bank deposit returns will remain low for a long time.

2. Bonds

The Budget papers confirmed a huge surge in public debt. This surge would normally, all other things being equal, point to higher bond yields. However, this is offset by massive spare capacity, low private sector borrowing and low inflation so it’s hard to see a lot of upside in bonds yields. If COVID-19 comes under control it’s hard to see much downside either, so medium-term bond returns are likely to be low.


This budget was supportive of companies and the business environment, both through attempts to boost household spending and through tax cuts and incentives at the business and individual level. Further, the ongoing addition of stimulus will further aid the recovery at the same time that interest rates are very low, all of which is supportive of shares in the medium-term.

4. Property

High unemployment, the phasing down of income support and the hit to immigration still point to more downside in prices in Melbourne and Sydney. However, continuing government property support measures will offset – particularly for houses in the outer suburbs and cities less impacted by immigration.

5. The Australian dollar

Ongoing fiscal stimulus at the high end of comparable countries coming at a time of rising commodity prices and a declining US dollar point to more upside for the Australian dollar. This is a continuation of the Australian dollar’s strong run this year.

Share this article
Subscribe to SMSF News

Subscribe today to receive a must-read weekly publication for any SMSF trustee

You may also be interested in...

You may also be interested in...

You may also be interested in...

You may also be interested in...

Our Privacy Policy explains how we handle personal information and use cookies and website tracking. We will follow the cookie and tracking settings you have selected in your browser.

Important notes

While every care has been taken in the preparation of these articles, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in them including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. Performance goals are merely goals. There is no guarantee that the strategy will achieve that level of performance. The information in this document contains statements that are the author’s beliefs and/or opinions. Any beliefs and/or opinions shared are as at the date shown and are subject to change without notice. These articles have been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. They should not be construed as investment advice or investment recommendations. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.

This document is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

Cookies & Tracking on our website.  We use basic cookies to help remember selections you make on the website and to make the site work. We also use non-essential cookies, website tracking as well as analytics - so we can amongst other things, show which of our products and services may be relevant for you, and tailor marketing (if you have agreed to this). More details about our use of cookies and website analytics can be found here
You can turn off cookie collection and/or website tracking by updating your cookies & tracking preferences in your browser settings.