COVID-19 Q&A

March 13, 2020

Over the last 3 weeks the world has been consumed with the unfolding Corona Virus epidemic and the subsequent impacts on share markets and potentially on the global economy. At this time Future Assist hopes that you and your family are all well and have not been affected in any way.

Will Future Assist services remain at full capacity? 

Absolutely!  In fact, Future Assist currently provides over 90% of its current advice, service and reviews through telephone, video conferencing and skype.  In addition, we have a distributed workforce with 4 physical offices and people that work from home. As such we are well placed to ensure services are sustained at full capacity. 

Do I need to sell any of my shares? 

Future Assist adopts a long-term investment strategy and does not recommend day trading.  One of our core investment methodologies is that we do not try to guess or beat the market, our strategies are based on tried and tested long term investment strategies and are backed by strong historical data and principles.  If you have any further questions, feel free to contact an Adviser. 

Do I need to do anything if I have an MDA? 

No.  The purpose of an MDA is to give you peace of mind.  The MDA platform is actively managed by Future Assist’s MDA Investment Committee and these investments are being frequently monitored and adjusted to meet market conditions.  Future Assist is on the front foot with the current conditions and has implemented strategies for our MDA clients accordingly. 

What about my property investments? 

Share market volatility is where bricks and mortar investments shine.  Interest rates are at historical lows and lending is exceptionally affordable.  Once again Future Assist believes investors with property should experience very minimal volatility this year and most states are set for modest growth. 

Do I need to do anything about my super or SMSF? 

No.  Once again, the strategies established for our clients are always developed with market corrections and long-term strategies in mind.  For retail and industry superannuation clients (without property diversification), you may find your super balances vary greatly during this time of volatility however markets will eventually settle. 

Should I buy or change anything with my investment portfolio? 

While your situation is unique, for most of our clients we once again recommend holding. Clients looking to buy or making changes to their portfolio should consult with their Adviser as any changes during times of volatility need to be carefully considered. For now, its time to just take a deep breath and keep in mind that markets will recover and if you sell now you may risk making your losses real. 

What is the Government doing to stabilise the economy? 

Actually, quiet a lot.  We are lucky that the Australian government is well placed to stimulate the economy and has released an $18 billion stimulus package and is well equipped to meet this challenge.  You can read more about what the government is doing to protect the economy here  https://www.pm.gov.au/media/economic-stimulus-package   

We believe there is even more stimulus to come! 

I’m feeling a bit worried now… what can I do? 

To be honest you are not alone, most of us are a little anxious now but keep in mind that nothing stays the same.  Fear is the biggest driver of both markets and people now and once this subsides things will return to normal. 

We all need to support each other and do our bit to slow and prevent the risk of coronavirus spreading.  Isolating ourselves from others for a short period of time is on the horizon but as we have seen in other countries its not the end of the world.  People still get up each morning, make a cup of tea or coffee and go about their day.  We just need to adopt a sensible and practical approach for the upcoming months. 

There are many myths of what coronavirus is and how you should protect yourself.  I encourage you all to get the right information which can be found here:   

https://www.health.gov.au/health-topics/novel-coronavirus-2019-ncov