ASX Market Update April 2020

Four months into 2020 and what a contrast.  January, February and the first half of March, across the board markets were generating strong interest.  Excluding the agricultural sector, the property market, small business, large business, local and wider economies and the ASX were looking forward to a healthy 2020.

Within two weeks the outlook for the year ahead changed dramatically; because of a Virus.  Restrictions and regulations were put into place that would change dramatically the economic and living environment we were accustomed to and have caused great uncertainly in what lies ahead of us.

Borders closed, personal contact and interaction restrictions have seen the ASX market plunge, small businesses closing, big businesses with their backs to the walls and then there’s the property market.

Principle places of residency, investment properties (within all sectors), are all feeling the pinch of the extreme withdrawal of cashflow from the economy.

The ASX has seen losses of between 20 to 50% (depending on the industry your stocks are held within).  The one thing I have learnt over the years is that you should always have the majority of control over your hard-earned cash.

However, there is a little brightness in these times of grey.  The Agricultural Sector!  From previous tough years and a hell of a start to 2020.  From March to now, some prime Queensland farming land has seen good rainfalls.  From Surat on the Darling Downs, up through the Banana Shire (Wowan, Dululu, Biloela), and more generally Western/Central Queensland the recent rains have seen families on the land restocking their heards and planting Winter and Spring crops.  There also appears to be an increase in market activity with reports of good sales of well-watered properties being achieved.

Prepare yourselves to what will be a roll-a-coaster of a ride in 2020.