Markets entered August near record levels, supported by strong company profits but carrying high expectations. Interest rates appeared likely to remain on hold, while property conditions showed early signs of softening.
These conditions do not point to a single inevitable outcome. They do, however, reward measured decisions and a clear understanding of what each part of a portfolio is designed to do.
The market picture on 4 August 2026
The S&P/ASX 200 closed at 9,019.30, approximately 2% below its February 2026 record. The US S&P 500 was approximately 7,600.50, near its June record. The RBA cash rate was 4.35%, annual CPI was 3.8%, gold was around US 4, 045 a n o u n c e a n d W e s t T e x a s I n t e r m e d i a t e o i l w a s n e a r U S 86 per barrel.
All were point-in-time figures rather than predictions.
Strong profits, but less room for error
The Investment Committee’s “Money on the Move” dial—an internal 14-point measure of how much optimism is embedded in share prices—remained at 9, classified as expensive.
Company profits were providing genuine support. Expectations for 2026 and 2027 global earnings had been upgraded over the preceding three months, and Australian earnings expectations had also improved.
At the same time, the Committee considered US and Australian markets fully valued on its preferred measures, with particular attention on expensive bank shares. When future growth is already reflected in prices, markets can be more sensitive to disappointment.
This was a reason for patience and diversification, not a prediction that a downturn was imminent.
Interest rates and inflation
The end of the fuel-excise rebate added pressure to household costs. With inflation still above the RBA’s preferred range, a rate cut before year end appeared unlikely, while another increase looked less probable than it had several months earlier.
Geopolitical developments remained capable of moving oil and share prices quickly. Technology and semiconductor companies also continued to drive both global profit growth and some of the year’s largest short-term market swings.
Income and growth assets do different jobs
Income assets—such as term deposits, bonds and some dividend-paying shares—are intended to provide cash flow along the way. Growth assets—such as most shares and property—are held mainly for their potential to increase in value over time.
The distinction matters because growth assets are priced partly on expectations of future earnings. Their values can move sharply when those expectations change. Income assets tend to be influenced more by the payments they produce and prevailing interest rates.
Most portfolios use both. The appropriate balance depends on time horizon, income needs and capacity to tolerate volatility.
A term-deposit ladder
Splitting cash across staggered maturities—for example, 3, 6, 12 and 24 months—allows portions to become available regularly while retaining some exposure to longer-term rates. It can support liquidity without placing all funds at a single maturity date.
Account-based pension drawdowns
Minimum annual drawdown rates increase with age: 4% for people under 65, 5% from 65–74, 6% from 75–79 and 7% from 80–84, with higher rates from age 85. Drawing the minimum may help preserve capital, but the setting still needs to meet actual spending requirements.
- Other retirement checks
- Review insurance purpose and cost
Income protection will often become less relevant after work ends, while life and total and permanent disability cover may still have a role in estate planning or meeting future costs. Premiums can rise significantly after age 60, so each policy should be reviewed before it is retained or cancelled.
Make family intentions easier to follow
Simple conversations with adult children about the location of documents, enduring powers of attorney and broad estate intentions can reduce future confusion without giving up control or disclosing every financial detail.
Softer property conditions
The source newsletter reported that Gold Coast agents were seeing price declines of around 10%, while some buyers’ agents observed enquiry levels down as much as 50% from pre-Budget conditions. These are local industry observations, not a comprehensive measure of the whole property market.
For owners, softer conditions are a reason to reassess cash flow and the property’s role in the portfolio—not necessarily to sell. For downsizers, a quieter market may provide more negotiating room as a buyer while also extending the time needed to sell.
Eligible people aged 55 and over may be able to contribute up to $300,000 each from an eligible home sale into super under the downsizer rules. Conditions apply.
A patient approach to expensive markets
The source strategy was to add to cash reserves and pause regular investment contributions while waiting for better value. That position reflected the specific portfolios and committee view discussed in the newsletter; it is not a general instruction for every investor.
More broadly, holding sufficient cash and defensive assets can prevent short-term volatility from forcing the sale of growth assets. A well-considered plan should be built around goals and timeframes, not a need to forecast the next market move.
If market valuations, retirement income or property conditions have prompted questions about your plan, contact Acquira Wealth Partners for advice based on your circumstances.
Important information
This article has been prepared by Acquira Wealth Partners for general information and educational purposes only. It does not constitute financial product advice and has not been prepared taking into account your objectives, financial situation or needs. Before acting on any information, consider whether it is appropriate for your circumstances and, if necessary, seek appropriate professional advice. Past performance is not a reliable indicator of future performance. Market data is approximate and sourced from publicly available information as at August 2026.
Reine Clemow is an Authorised Representative (No. 461670) of Acquira Wealth / Acquira Wealth Pty Ltd is a Corporate Authorised Representative (No. 001319892) of GPS Wealth Ltd | AFSL 254 544 | ABN 17 005 482 726 | www.gpswealth.com.au | Email Disclaimer Acquira Wealth Pty Ltd is a Corporate Authorised Representative (No. 001319892) of GPS Wealth Ltd, AFSL 254 544, ABN 17 005 482 726.
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