Business
Today we have Michael Braude back for the economic forecast. There have been a lot of changes recently to the market and Michael talks us through these and what to look out for in the coming months. On the Episode: The volatility of the market right now is similar to the GFC however it differs as it started as a health pandemic but is now also having an impact on the financial side of the economy as well. The Corona Virus is now affecting and reaching people and businesses all around the world and is causing a lot of changes for businesses where there is grounding of flights, closing of schools and businesses. With a workforce that is made up of a lot of employees that are employed on a causal basis it means that there is now a lot of people who are either out of work or are now at risk of loosing their job. We have gone into the current pandemic in a very different position than we were in during the GFC. Although the prices of oil are dropping, households are still having to pay a large amount per litre at the pump. Initially there was a collapse in the yield of bonds, however in the last few days yields have gone up despite interest rate cuts. The commodities are changing dramatically during this time and many of the food based commodities have dropped in the past few weeks. As we are in unchartered territory it is hard to say what is going to happen next. It is important to keep an eye on the Australian Dollar and how it is comparing against the US Dollar. There is many changes that are still to come and it could be ongoing for a number of months. The important thing is to make sure that there is not too much panic and to remember resilience and that we will bounce back.