In a lively and timely conversation on ABC Radio Melbourne’s “On the Money” segment, Lisa Leon and investment expert Remo Greco tackled the evolving economic landscape, the impact of interest rate shifts, market manipulation concerns, and the latest investor traps. They even touched on the ripple effects of the interest rates Musk vs Trump rivalry on global markets. Here’s a blog-style wrap-up of the key insights from their discussion.
Interest Rates Are Falling – But Don’t Rush to React
The Reserve Bank has cut interest rates twice this year, and economists suggest more cuts may be on the way. While this spells good news for mortgage holders, it’s not great for savers relying on term deposits or fixed-income investments. But before you leap into action, Greco has a strong message: don’t let the industry bully you into making hasty moves.
He warned that as rates drop, financial products designed to lock in “attractive” yields will start flooding the market. “Our industry is fantastic at capitalising on opportunity,” Greco said. “But the message to retail investors is: beware of being enticed into doing something just because everyone else is.”
The Market Is Already Ahead of You
By the time you hear the news, the market has already moved. Term deposit rates, for example, have already dropped a full percentage point in some cases, while the Reserve Bank has only cut rates by half a per cent.
If you’re waking up today thinking it’s time to act well, the game’s already in the third quarter, Greco explained. In other words, if you haven’t already planned for falling rates, rushing in now may not deliver the benefit you expect.
The Pressure to Act vs. The Power of Patience
One of the most practical takeaways from the segment was the importance of staying calm and assessing your situation honestly. Greco warned that investors are often pressured into taking action when simply doing nothing might be the better strategy, especially for long-term investors.
“Markets are good at bullying people into action,” he said. “But you don’t have to act just because everyone else is.”
The Key Questions to Ask Before You Invest
When evaluating any investment, particularly in uncertain times, Remo suggests asking three key questions:
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Credit quality: Is the borrower or investment issuer reputable and likely to repay?
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Liquidity: When can you get your money back?
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Yield: Is the interest or return rate fair given the risk?
If you’re unsure about any of these, it’s a sign you should pause and seek advice.
And if a particular investment is causing you to lose sleep, that’s a major red flag. “If it wakes you up at 3 a.m., ask yourself: do I understand what I own?” said Greco. Trust your gut instinct, it’s often more reliable than people think.
Be Cautious with Overseas Bonds and Text Message Offers
During the call-in segment, listener Elaine asked about an offer she received via text message promoting international bank bonds from institutions like Barclays and Swiss banks, promising high returns of 9–10%.
While these returns might be technically possible, Greco raised several caution flags:
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Currency risk can wipe out returns entirely if the exchange rate turns against you.
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Scam alerts: Any unsolicited investment offers, especially via text, should be treated with scepticism.
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Always verify that the provider has an Australian Financial Services Licence (AFSL) and check ASIC’s website for fraud warnings.
Musk vs Trump: A Modern-Day Power Struggle with Market Impact
Though not the focus of the entire segment, the tension between Elon Musk and Donald Trump also earned a brief mention. The feud is part personal, part political, and certainly economic, may seem like celebrity drama, but it has real implications for investor sentiment and tech-heavy markets.
Investors should be aware that personality politics can shake market confidence, especially in an age where individual influencers hold more sway than ever.
What About Your Shares in Suspended Companies?
Another caller, Hafiz, raised a concern about REX airline shares, which have been suspended. Greco explained that if a company enters voluntary administration, shareholders are typically the last in line, behind creditors and other stakeholders, to receive any money, if at all.
The reality? Your shares might become worthless, and you’ll eventually receive a letter confirming this, so you can write off the loss for tax purposes. It’s a hard truth many investors face when companies collapse.
Upcoming Superannuation Changes: Wait Before You Worry
Finally, listener Peter voiced concern about proposed new taxes on capital gains within self-managed super funds (SMSFs). Greco advised patience.
“The rules haven’t been written yet,” he said. “We need to wait until at least July or August to know exactly what’s changing.” Until then, don’t make any big moves or assumptions. Major changes to super policy can have grandfathering clauses or retrospective implications, but no one truly knows the outcome yet.
Final Thoughts: Be Patient, Be Informed, and Be Kind to Yourself
In an era of instant news and market hype, the message from Remo Greco was clear: step back, assess carefully, and don’t let fear or urgency control your decisions. Whether it’s the Musk vs Trump saga, volatile interest rates, or suspicious investment offers, the best protection is knowledge and a cool head.
Bottom line? If you can sleep soundly at night knowing what you’ve invested in, you’re probably doing okay.
