Lucerne and Eikon Financial hosts post-budget event with CEO Institute

The Last Stand: How the 2019 Budget and potential election outcome will affect the economy, your business and personal and family wealth

In front of a packed presentation room at Kooyong Lawn Tennis Club on Wednesday 3 April, an expert panel assembled to dissect the federal budget for our cocktail event in partnership with the CEO Institute and Eikon Financial.

Whilst the budget handed down by Josh Frydenberg ahead of next month’s election was an unspectacular event, the real insight came from by our panellists Chris Murphy (economist), Katerina Nicolakopoulos (Private Wealth Adviser, Eikon Financial) and Dr Jerome Lander (Lucerne Investment Committee).

Independent economist Chris Murphy was first up to unpack the government’s economic forecasts that were, according to Chris, a little over-optimistic.

“The budget forecasts economic growth in the coming financial year will be 2.75%,” he said.

“Since the Global Financial Crisis, Australia has averaged about 2.5%, and at the moment we’re facing a downturn in housing which will affect housing activity as well as consumer spending.

“There are some bright spots like interest rates are low, supporting business investment, the Australian Dollar is relatively low supporting our exporters, but on balance I think economic growth may only be around 2.25% rather than the 2.75% that the budget is forecasting.”

Katerina Nicolakopouls followed Chris Murphy, outlining the key impacts if Labor takes the next election and how to best position yourself to successfully navigate the challenges and opportunities.

“Should Labor win the election, they’ve already announced a raft of tax policy changes across almost all tax entities Australian’s are investing their surplus monies in,” she said.

We look forward to bringing you an in-depth piece on this from Katerina in run up to the election on May 18.

Lucerne Investment Committee member Dr Jerome Lander closed by answering an important question: In a world of populist politicians, unsustainable fiscal policies, irresponsible central banks and extremely risky markets, how can investors best protect capital and achieve attractive risk adjusted returns?

“I think people have forgotten about the risks of investing because it’s been so easy to make money over the last several years as a result of low interest rates over along period,” he reflected.

“We need to think about what our true financial objectives are and I think for many people their objectives are much more focused on trying to avoid large losses and achieve satisfactory returns.”