Economic Update Video – September 2020

The Reserve Bank forecasts the economy will contract 6% this year before rebounding 5% in 2021.

The recent company reporting season provided an insight into the financial impact of COVID-19 on the economy and for investors.

Only 75% of ASX 200 companies reported a net profit in the year to June. Full-year earnings were down 38% on aggregate, while dividends were down 36%.

53% of companies either cut or didn’t pay a dividend, a move that will affect investors who depend on dividend income from shares.

The current cash target rate of 0.25% has been left unchanged and is expected to remain at its current level for the foreseeable future.

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Disclaimer: The information in this article is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any of the information you should consider the appropriateness of the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or other offer document prior to acting on any financial product or implementing any financial strategy.

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