Middle East War Impacts Aussie Markets, Retirees Feel Pinch

0:00In Sydney, it's March 19th. Here's what is happening. The war in the Middle East is heating up, with fresh attacks hitting key energy sites and shaking global markets. Australia's main stock index, the S&P ASX200, has dropped 7% since the fighting ramped up, wiping out around $250 billion in value. Oil prices have surged past $110 per barrel, adding fuel to the fire. Its war in the conflict is nowhere near over, and more pain could be ahead. Chief economist Shane Oliver from AMP predicts a market correction, potentially falling another 8% from here for a total drop of 15%. Higher energy costs are stoking inflation fears, which might push interest rates up and drag down consumer competence even further. Everyday investors are feeling the pinch, especially retirees relying on superannuation. One 67-year-old saw $17,000 vanish from his balance in just the first week. With Australia's Super Pool, topping $4.5 trillion in average balances near $250,000

1:06for those nearing, retirement, the temptation to shift everything to cash is strong. Superfunds typically mix shares, bonds, property, and cash, and you can check your setup right in the app. Switching allocations online, or by phone, takes as little as two days, but advisors caution against panic moves, selling low locks and losses, and timing a return to growth assets is notoriously tough. Patient seems to be the best play right now. Market watchers say holding steady has paid off in past crises, like the global financial crisis, where balanced funds doubled cash holdings over. Time. Even the US Federal Reserve is staying put amid the uncertainty, as Chair Jerome Powell notes the unclear economic fallout from higher energy prices. The Daily News Now is powered by our sponsor.