Term deposit investment 'important in uncertain times'
Australian savers and investors have been advised to compare term deposits and develop a mixed portfolio of assets during the current period of economic uncertainty.
Noel Whittaker, director of Whittaker Macnaught, a Queensland-based financial services and advice firm, revealed that he has recently received a "spate" of inquiries from investors concerned about the effect that the flood disaster could have on their portfolios.
"The effect of the floods will be felt for years to come, and there will certainly be some short-term impact on economic activity as businesses that have been damaged or destroyed try to get back on their feet," he said in an article for the Gold Coast Mail.
However, Mr Whittaker also pointed to the "inevitable surge in economic activity" that will occur once the huge rebuilding effort gets fully underway, a trend he said would only be positive for the share market.
He suggested that in light of these sharply fluctuating market forces, savers and investors should look to achieve diversity in their financial affairs by having a range of assets that includes residential property, local and international shares and term deposits while "always keep enough cash available for unexpected expenses".
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