It's Tuesday, the 23^rd of September 2025. Reserve Bank of Australia governor Michele Bullock appeared before a parliamentary committee yesterday, and in a wide-ranging discussion, the basic message was that the local economy is recovering, supported by interest rate cuts, but global economic uncertainty could spoil the party. Bullock said inflation was heading to target, the economy was at full employment, although productivity remains low. She also warned that financial markets didn’t appear to be pricing in the risks surrounding the global economy.

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News in brief

The federal government will review whether Optus and its Singaporean parent company, Singtel, have underinvested in their networks, while Prime Minister Anthony Albanese has questioned whether Optus chief executive Stephen Rue should keep his job.

Israeli Prime Minister Benjamin Netanyahu has vowed there will never be a Palestinian state, after Australia, Canada and Britain simultaneously recognised Palestine. Netanyahu threatened reprisals and accused Prime Anthony Albanese and other leaders of rewarding terror.

Federal Treasury has been presented with a model to support bank branches in the bush that would see the country’s nine largest lenders transfer $153 million each year to smaller banks under an alternative plan for a rural banking levy.

Granny flats are back in fashion, with budget-conscious home buyers looking for cheaper options across the country, according to a new report from online property group, Domain. People are looking for affordable, flexible living arrangements, reflecting both multigenerational living and rental income potential.

Nvidia has taken the top spot among the most bet-against by investors, with Tesla, Microsoft and Apple, coming in at two, three and four. It demonstrates that many investors believe big tech is over-priced.

Fear-o-meter

RBA governor Michele Bullock was beaming yesterday, answering questions from politicians flanked by her top bureaucrats. Australia’s economy is heading in the right direction – inflation is under control and the economy is at full employment even if productivity remains a problem.

What she said about equities and credit pricing was more interesting. Bullock effectively said investors are mis-pricing risk, and particularly global risk. Share markets are at or near record highs and that doesn’t make sense given all the geopolitical uncertainty (tariffs, wars) going on in the world. Credit pricing doesn’t reflect credit risk, the governor said.

It isn’t overstating it to say these are dangerous times for equity investors. Many analysts, like Bullock, say assets are overpriced. And when they come down, they could drop quickly. Buyers beware.

Fear & Greed Q+A today

On some of the main mistakes and myths around retirement, including the suggestion that you need millions in super for a comfortable retirement: 

 

"Well, it's going to be true for some, but not true for everybody. And the classic number is always a million dollars in super, like everyone needs a million dollars, but it's definitely not true for the mass... How much you need in retirement is going to largely be defined by what your needs are going to be.

 

This is different for everybody. I have some very, very well-heeled clients worth a lot of numbers, well into the seven digits, but their cost of living is only about $30,000-$35,000 a year, so they don't need a million or two million or three million to retire. They probably only needed a few hundred thousand.

 

There are some numbers that the Association of Superannuation Funds Australia bounce around in terms of how much one needs to support a comfortable lifestyle which they define at around $73,000 a year for a couple and around $52,000 a year for a single, and if you're a homeowner they basically say if you want to support that, you need around $690,000 of lump sum at  the point of retirement to support that for a couple and around $600,000 for a single. So a far cry from the million dollar figure, and a far cry from even bigger numbers that people are reporting."

Greed-o-meter

As mentioned above, there's been a surge in interest in granny flats across the country - it was the most-searched keyword on Domain in Sydney, and was in the top 10 for both Perth and Adelaide.

Source: Domain

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