Here’s what you need to know today

• Australian inflation ticked up in August. For the 12 months to August it hit 3%, up from 2.8% in the 12 months to July. This was higher than the 2.9% economists were predicting and is at the top of the Reserve Bank’s 2-3% target range. (Reuters)
  
  

• As a result of the uptick in inflation, NAB economists have pushed back their prediction for Australia’s next interest rate cut. Previously they were predicting a rate cut in November 2025. Now they predict May 2026. (Capital Brief)
  
  

• Anthony Albanese has got his meeting. Australia’s Prime Minister has scheduled his meeting with US President Trump, after initially being snubbed from the President’s bilateral meeting list. Albanese will be hosted at the White House on 20 October. (ABC News)
  
  

• Optus’ terrible week continues. While it deals with the fallout from its triple-0 failure and the Prime Minister suggests CEO Stephen Rue should consider his position, the Federal Court has ordered it to pay a $100 million fine over “appalling” sales conduct that targeted vulnerable customers. (ABC News)
  
  

• The US Government has identified the next company it would like to take a stake in. Reports the government would take a 10% stake in Lithium Americas Corp, owner of America’s largest lithium mine, saw the stock jump 80%. This follows the US Government taking equity stakes in Intel and in MP Minerals. (Reuters)
  
  

• Australian llithium stocks had a good day following the Lithium Americas announcement, with Pilbara Minerals up 5%, Liontown Resources up 2% and Mineral Resources up 5%.
  
  

• President Trump offered plenty of moments during his speech to the UN. Given 15 minutes, he spoke for 56, telling his European allies, “Your countries are going to hell”, calling climate action “the greatest con job ever perpetrated on the world” but he saved his biggest criticism for the UN itself (for whom leaders had gathered to celebrate its 80 year anniversary) saying, "all they seem to do is write a really strongly worded letter and then never follow that letter up". (ABC News)
  
  

• President Trump also gave one of his strongest endorsements of Ukraine to date. Previously a proponent of land swaps between Russia and Ukraine to end the war, Trump posted “I think Ukraine, with the support of the European Union, is in a position to fight and WIN all of Ukraine back in its original form.” He also called Russia a “paper tiger” whose economy is in “BIG trouble”. (BBC)

What the…?

Yoto, a British company that makes screen-free speakers for children, may boast one of the most impressive list of backers going around. It has backing from The Beatle’s Sir Paul McCartney, Meta founder Mark Zuckerberg and the family of British author Roald Dahl.

While most speakers don’t have screens, they require using a screen to connect and play. The company has designed this device with a punchcard-like system to ensure kids don’t need to use a screen at all. A great idea, but somewhat ironic that the world’s #1 screen time merchant Mark Zuckerberg is a backer. (Financial Times)

Investing is a lifelong journey

Here’s what you can learn today

Don’t cut your pie too thin

Community Question: If I have $10,000 or $20,000 or even less, how should I think about splitting that across my investment options?

This response is an excerpt from a recent episode we did with Charlie Viola, financial adviser and founder of Viola Private Wealth.

Charlie: My counsel always is if you got a small amount use the same principles, but invest in options that are suitable for that smaller pot of money. Don't cut up your pie too thin. Think about good quality ETFs that have got good quality underlying assets and have a material amount of your pot of investments in those good quality assets.

If you've got a small amount - less than $100 each time or less than $50,000 total to invest - you really don't want more than two or three lines of investments, to be honest, because you end up cutting up the pie too thin.

You end up having immaterial exposures that even if that exposure grows 100%, it actually doesn't change your life.

So if you've got $50,000 and you've got 20 lines of investments, you know, simple maths tells you you've got about two and a half grand or two grand or whatever in every investment. Even if that thing shoots the lights out, two grand turned into four. It actually hasn't changed your life.

You want a greater exposure or more material exposure to normal, good quality lines of investments and allow efficient market theory to do its job over the medium to long term.

Interested in speaking to Charlie or another of our hand-picked financial advisers? Fill out the form on our website and we’ll match you with an adviser that suits your needs.

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