How a bear market will hit your wealth: From $200k to $3.8m
So far, the cost of Donald Trump’s presidency has been felt by bond and stock traders. But if pain persists, it could cost wealthy retirees $100 a week.
A bear market will cut $200,000 from the nest eggs of retirees with $2 million in superannuation, leading to spending cuts. Bethany Rae
As extreme volatility in share and bond markets roils traders, investors are now calculating what longer-term damage US President Donald Trump’s tariffs might do to America and the global economy.
And with BlackRock chief executive Larry Fink saying this month that the US is possibly already in recession, that means a bear market (defined as a 20 per cent drop in the value of stocks from their peak) remains a real possibility in the US and Australia.
Andrew HobbsWealth reporterAndrew Hobbs covers self-managed superannuation funds, financial planning, retirement and inheritance. He has been a financial journalist for more than 25 years, working previously at Bloomberg and Australian Associated Press.
