As nervous investors kept a keen eye on the US Senate debate over the US$700 billion bail-out package, Mudgree regional residents were left wondering what effect the US fall-out was having locally.
Denis Yeo of Denis Yeo and Associates said this week “you don’t see a bloodbath here,” however, he did indicate that repercussions would be felt locally.
Already, Mr Yeo said people are receiving their superannuation statements in the post and many are finding out they are “all worth less than they were last year.”
He added he thinks people planning to retire are being affected.
He said some people who have got investment shares they planned to cash in for retirement may now put those plans on hold as it is likely they will lose money.
He said they are more likely to stay at work, or return to work, rather than cash in investments or shares.
Mr Yeo said people are expected to be a little more conservative in their investments, coming back to things such as cash term deposits and property “because it’s just things that they know.”
However, Mr Yeo agreed with the assertion that Australia is fairly safe from the world crisis.
He said our banks, credit unions and greater building societies are heavily regulated and monitored.
“If they’ve got cash in banks, they will be just fine. If they are worried, they should just sit on their cash for awhile, such as putting it into term deposits.”