Opportunities in changing markets are never static—they ebb and flow with economic shifts, investor sentiment, and global events. As we move into Autumn 2025, investors are navigating a mix of volatility and opportunity. While equity markets are experiencing turbulence due to ongoing tariff discussions, European markets are showing resilience. Meanwhile, the Australian housing downturn appears to be reversing, with early signs of recovery in key cities.
In this edition, we break down the latest trends shaping investment decisions and explore why diversification and alternative assets like gold are more important than ever in an uncertain environment.
The unlisted property market appears to have found its bottom, with valuations stabilising and early indicators of an upswing emerging. After a period of price correction due to rising interest rates, investor confidence is returning, driven by an improved economic outlook and continued demand for quality assets. This could present opportunities for investors seeking stable income and long-term capital growth.
Recent data from CoreLogic also shows that the residential housing downturn has reversed in February, with Melbourne and Hobart leading the way. The national Home Value Index posted a 0.3% rise, marking a potential inflection point.
Key Highlights:
Melbourne and Hobart recorded the largest monthly gains at +0.4%.
Sydney and Melbourne's high-end property market is recovering after experiencing the sharpest declines.
Buyer sentiment is improving due to expectations of lower interest rates, reflected in rising auction clearance rates.
Equity Markets: Volatility persists amid tariff discussions, markets remain turbulent as global trade tensions, particularly surrounding tariffs, continue to dominate investor sentiment. The ASX200 has corrected over 9% from its recent highs, reflecting investor caution. However, European markets are showing signs of resilience, with the EURO STOXX 50 nearing all-time highs despite global uncertainty.
For long-term investors, these fluctuations can present buying opportunities, particularly in quality stocks that have been oversold. Maintaining a diversified portfolio remains crucial to navigating this volatility.From a global perspective, the Australian stock market represents only about 1% of global equities, highlighting the need for international diversification. While the ASX200 has faced challenges, broader global markets, including the US and Europe, continue to provide growth potential.
Why diversification matters:
Exposure to global sectors not well represented in Australia (e.g., technology, healthcare, and industrials).
Reduced reliance on the Australian economy and interest rate policies.
Smoother long-term returns through a mix of different economic cycles.
A well-diversified portfolio should balance Australian equities with global stocks, fixed income, and alternative assets.
Gold has historically been a safe-haven asset, providing protection during periods of economic uncertainty and inflation. As trade tensions continue and market volatility rises, investor demand for gold has increased.
Benefits of holding gold:
Acts as a hedge against inflation and currency devaluation.
Provides portfolio stability during downturns.
Historically uncorrelated with equity markets, reducing overall risk.
Despite short-term market turbulence, maintaining a disciplined approach and focusing on diversification can help investors navigate uncertainty. At Synergy Private Wealth, we continue to assess global trends and investment opportunities to position our clients for long-term success.
For a personalised review of your investment strategy, feel free to reach out to our team.
Synergy Private Wealth