14 Mar Shares hit another bout of turbulence
Key Points:
- US regional bank failures have added to uncertainty about the investment outlook flowing from inflation & rate hikes.
- Specific issues with the failed banks and action to protect depositors may limit broader problems for US banks.
- But the wider risks are high and its normal for problems like this after rapid rate hikes. Given the now high risk of recession (which would curtail inflation) it makes sense for central banks (including the RBA) to pause rate hikes.
- Share market falls are painful for investors but the bestapproach for most is to stick to a long-term strategy.
