There have been three rate cuts by the RBA bringing the official cash rate to an all-time low of 0.75%. Concern over the state of the Australian economy and global trade wars means dark clouds are still looming. In fact, ASX cash rate futures are implying the possibility of two more cuts over the next eight months.
As always, having a balanced portfolio with defensive assets is important. But, with new ‘fixed income’ instruments coming to the market promising higher returns, knowing what your investment is comprised of is crucial.