Equities, bitcoin, gold sell-off; US voters warn Trump; AI heart health

Equities, bitcoin, gold sell-off; US voters warn Trump; AI heart health

News in brief

ASIC chair, Joe Longo, yesterday said Australia’s financial markets need to innovate or stagnate, and private credit in this country faces a turning point. He said the private credit sector is still small and there is time to act but Longo put it on notice to improve practices. Otherwise, the sector faces legislative obligations.

 

Goodman Group has reported a solid September quarter, and the data centre and commercial property group said development activity is set to accelerate in the second half. But boss Greg Goodman warned that it is getting harder to build data centres, notwithstanding all the tens of billions of dollars being thrown around.

 

More than $2 billion has been recovered for underpaid workers in the past five years, with over half the amount back paid by large corporate employers, according to the Fair Work Ombudsman.

 

In what has been described as judgement on the performance of Republican President Donald Trump, polls in New York City, New Jersey and Virgina have all been won by Democrats, while a vote in California sided with a Democrats proposal.

 

Scientists have uncovered structural heart problems by using an artificial intelligence tool to vet smartwatch data. The new technique found conditions including weakened pumping ability, damaged valves and thickened muscle, promising to expand the potential of wearable devices beyond detecting rhythm disorders.

Fear-o-meter

The breadth of the sell-off in financial markets during recent days has been a surprise. Equities including some of the tech stocks, gold and silver, Bitcoin and Ethereum, oil and other commodities have all lost ground.

 

In most cases asset values haven’t fallen by much. The S&P/ASX200 is down just three per cent since its peak two weeks ago. The world’s largest company Nvidia’s value has gone from $US5 trillion, to $US4.83 trillion. Microsoft has lost ground while Apple has been flat.

 

Gold is down about ten per cent and silver a bit more. Bitcoin is the biggest loser of the main assets, down 20 per cent since its peak of last month. The number two crypto, Ethereum, is off more than 30 per cent since its peak.

 

Markets are fickle, but in recent days, there’s been a sense that tech stocks and crypto currencies are overvalued. When there’s positive momentum, investors talk about the good news. Right now, they are talking about the bad news. They are asking whether the AI boom has been over-bought. Has gold run too far. Will there be any more rate cuts. There is a real sense of unease in financial markets at the moment.

Fear & Greed Q+A today

On all the non-investment parts of running a SMSF - one of the big topics at the recent Class Ignite 2025:

 

"People that are looking to set up a self-managed super fund... do that because they love that idea of having that control and flexibility. But I suppose with that control and with that flexibility and being a member of a self-managed super fund, you are also a trustee. Therefore, as a trustee and a member of the fund, you are solely responsible for everything that goes on in that fund. 

You're responsible for running the fund in line with superannuation and tax law, adhering to all the compliance requirements. You're responsible for meeting the sole purpose test... the reason as to why you're setting up the fund and why you're investing in particular assets to pay for a retirement benefit or to pay for a benefit in the event of death. You're responsible for setting up the investment strategy of the fund, complying with all the investment restrictions, accepting contributions and rollovers. So as a trustee, they're your responsibilities.

 

You need to adhere to all those requirements under super and also under tax law. So that's where the role of a financial planner can be crucial in helping members and trustees of self-managed super funds, adhere to all those legal requirements that come with running your own self-managed super fund."

The local share market fell to a six-week low yesterday, as Wall Street’s tech titans tumbled and other asset classes including bitcoin and gold dropped as investors got nervous about high valuations. An index of the Magnificent 7 tech stocks – Nvidia, Microsoft, Apple, Meta, Amazon, Alphabet and Tesla – fell more than two per cent yesterday. What’s emerging is a higher aversion to risk, concerns over tech company valuations, and receding expectations of rate cuts in the US and Australia. That is weighing on asset prices.

Greed-o-meter

Service	Subscribers (millions)	Change (%)
Netflix	6.4	+3%
Amazon Prime Video	5.1	+6%
Disney+	3.3	+6%
Stan	2.6	(–)
Paramount+	2.1	+21%
Kayo Sports	1.7	+6%
Binge	1.6	+4%
Other	3.8	+3%

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Source: Telsyte, reported in AFR