Evan Lucas on the RBAs latest rate rise
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Today the RBA increased interest rates by a further 0.25%, taking the cash rate to 3.35%.
One line in the RBAs announcement today stood out, with the RBA acknowledging the lag between interest rate rises and the slowing down of the economy and bringing inflation back to an acceptable level. From the RBA announcement:
"The Board recognises that monetary policy operates with a lag and that the full effect of the cumulative increase in interest rates is yet to be felt in mortgage payments. There is uncertainty around the timing and extent of the expected slowdown in household spending. Some households have substantial savings buffers, but others are experiencing a painful squeeze on their budgets due to higher interest rates and the increase in the cost of living."
For InvestSMART investors, this means it remains crucial you focus on your diversification and investment timeframe. We say this because we don't know the extent of the volatility, but we do know that a well-diversified portfolio, with your eyes on the horizon, is the way through it. Jumping in and out of investments continues to be a surefire way to lock in losses, not grow your wealth.
By jumping in and out, you miss out on dividends and have to make the difficult decision of "when do I get back in?" We find people are terrible at this last question and are more likely to return when markets are higher than when they exited, not lower.
Stick with your investment plan and reach out to the team if you want to have a chat. We're happy to help.
Evan Lucas is the Portfolio Manager for the InvestSMART Diversified Portfolios.
Call 1300 880 160
Start a chat
Schedule a call
