RBA set to cut rates; super funds weather storm; hope for Alzheimer's sufferers

RBA set to cut rates; super funds weather storm; hope for Alzheimer's sufferers

News in brief

The Reserve Bank is expected to announce a cut in interest rates tomorrow afternoon, amid fears over the US economy and what a rate cut means for house prices.

 

Prime Minister Anthony Albanese attended Pope Leo XIV’s inauguration ceremony overnight and is inviting him to visit Australia in 2028 for the World Ecumenical Congress.

 

Superannuation funds have weathered the tariff storm remarkably well, according to Chant West, with the median super fund delivering positive returns in April.

 

US regulators have approved the first blood test to help diagnose Alzheimer’s disease, potentially making it easier to find and treat patients with the mind-robbing disease that affects tens of millions globally.

 

A faint, water-stained manuscript in the library of Harvard Law School, bought just after WWII for $US27, has been declared an original 1300 version of the Magna Carta.

Fear-o-meter

It is a big week for the housing market because of a likely cut in interest rates tomorrow, but any 25 basis point cut in mortgage rates won’t make a huge difference.

 

According to the Housing Industry Association, home affordability is at a 30-year low. Essentially Australia hasn’t built enough homes as the population grew. Per capita, home ownership is at its lowest level in 70 years. For those with a mortgage, mortgage payments as a proportion of income are at a 15 year high. That’s a big part of the reason why people are so vulnerable to cost-of-living pressures.

 

Bank of Queensland’s well-regarded chief economist Peter Munckton has some good news on the supply front.

 

Residential construction approvals are picking up, and have done since the middle of last year, he says, and it’s been evident in all the largest states. Lower interest rates have likely played a role, as has the slowing of input cost inflation. Worker shortages remain an issue, albeit less so than three years ago.

 

More needs to be done. A pick up on construction productivity and a slowdown in infrastructure spending (thereby freeing up resources) would help. But at least the sector, according to Munckton, is on the right track.

Who's talking today?

On the boom in private credit, the opportunities, the risks, and something you don't hear many private credit providers talking about: how the industry can be improved.

 

"There should be a standardisation of information that we can provide to investors. So if they want to have look through rights in relation to the portfolio, how often should we be doing that? What is the format? And, and just the terminology that is used in the industry should be standardised and should be explained as well. There's still a little bit of confusion in relation to the language, which makes it very difficult to compare one fund to another fund." 

It’s Monday the 19th of May, and the Reserve Bank is set to announce a rate cut this week, the PM attends Pope Leo's inauguration and super funds manage a tough April well. Plus, hope for Alzheimer sufferers and an original Magna Carta is discovered.

Greed-o-meter

Risk	Growth assets %	1 mth (%)	3 mths (%)
All Growth	96–100	0.4	-4.5
High Growth	81–95	0.5	-3.2
Growth	61–80	0.6	-2.2
Balanced	41–60	0.6	-1.1
Conservative	21–40	0.6	0.1

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As mentioned above, super funds did pretty well in April considering the market turbulence because of tariffs. This is the performance of the traditional diversified fund (depending on the risk category).

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Source: Chant West. Results to 31 April.

They made it!

Have you ever seen two more relieved faces? After months of training, Sean Aylmer and Adam Lang spent three exhausting days pedalling more than 380km from Bourke to Narromine. What an adventure.

 

Thank you to everyone who has donated to the Ride For Country Kids, raising money to improve life options for kids from rural communities.

 

The fundraiser is still open - you can donate here if you're able to help.