Here’s what you need to know today

• The Australian consumer is holding up okay. Consumer confidence hit a 7 year high (outside the pandemic years). This was the first ‘net-positive’ score in 4 years, where optimistic consumers outweighed pessimistic consumers. This is good news for retailers who are gearing up for peak sales season. (Bloomberg)
  
  

• Indonesia’s President Prabowo Subianto met with Anthony Albanese in Sydney yesterday. The two leaders signed a defence agreement outlining the rules of engagement in the event of conflict in the region, including with China. Indonesia is the fourth-most populous country in the world and one of our closest neighbours, making the relationship one of Australia’s most important. (Nine)
  
  

• Food delivery app Menulog has announced it will shut down operations in Australia. Menulog’s market share has dropped from 80% in 2014 to below 25%. Anyone with unused credits or vouchers should use them before 26 November. (ABC)
  
  

• Japanese clothes retailer Uniqlo continues growing in Australia. It’s latest numbers filed with the corporate regulator show that sales were $817 million in the 12 months to August. This was up 19% year-on-year. For comparison, Nike’s Australian sales came in at $891 million. (SMH)
  
  

• The rise of the neocloud continues. We’ve celebrated Australian company IREN recently, that is up 450% this year and recently signed a US$9.7 billion deal with Microsoft. Two more neoclouds reported this week. Nebius Group reported revenue grew 355% in one year and also announced a US$3 billion deal with Meta. CoreWeave reported revenue up 134% year-on-year. Neoclouds build data centres with high-performance GPU computing designed for AI tasks.(Reuters)
  
  

• As Australia’s Liberal Party prepares to meet to discuss its climate policy, polling has been circulated suggesting dire electoral consequences if it ditches Net Zero. Just one-in-five voters agree the Liberal Party is “in touch with modern Australia” and a similar proportion said the party aligned with their priorities on climate change. (Capital Brief)
  
  

• The US government shutdown is nearing a conclusion, but is being held up for the most ironic of reasons. The shutdown has caused huge flight delays and members of the House of Representatives are facing disrupted travel getting back to Washington to vote to end the shutdown. (USA Today)
  
  

• US aircraft carrier, the USS Gerald R. Ford, entered Latin American waters on Tuesday, joining 8 warships, a nuclear submarine and F-35 aircraft already deployed in the Caribbean. The US claims this military build-up off the coast of Venezuela is targeting drug trafficking but the Venezuelans are growing increasingly concerned. (Irish Times)
  
  

• Dual bombings have the subcontinent on edge. Pakistan saw a suicide bomber kill at least 12 people outside a courtroom in the capital, Islamabad. Pakistan’s prime minister, Shehbaz Sharif, blamed extremist groups "actively backed by India". (BBC) Meanwhile the Indian capital, Delhi, was rocked by a car bomb that killed at least 8 people. India’s Prime Minister Narendra Modi blamed unnamed “conspirators”. (FT)
  
  

• Britain’s unemployment rate rose to 5%, the highest since the pandemic. This is more bad news for chancellor Rachel Reeves, who is also preparing to break the Labor Party’s election promise to not raise income taxes when she presents her budget on 26 November. (BBC)

What the…?

The challenges of the American consumer are showing up in the fast-casual chain restaurant. Long the go-to for office worker lunches, chains like Chipotle, Sweetgreen and Cava are all reporting challenging environments. Or as Sweetgreen’s Jonathan Newman said, “It’s pretty obvious the consumer is not in a great place overall.”

But its not just fast-casual restaurants. McDonald’s reported a double-digit decline in visits from low-income customers. Which has analysts asking: are we seeing the start of a restaurant recession in the US? (Quartz)

Investing is a lifelong journey

Here’s what you can learn today

Manage your emotions as investors

Community Question: What is one thing you tell all of your clients?

We put this question to Felicity Thomas, Senior Private Wealth Adviser at Shaw & Partners.

This is a great question and even more relevant than ever over the past few years with turbulent market conditions.

One crucial piece of advice that I consistently share with all clients is the importance of keeping emotions out of investment decision making.

This advice is rooted in the field of behavioural finance, which recognises that human emotions can often lead to irrational and detrimental investment choices. By adhering to this principle, you can stay focused on your financial plan and increase your chances of achieving their long-term financial goals.

Emotions, such as fear, greed, and overconfidence, have the potential to cloud judgment and drive us to make impulsive investment decisions.

During times of market volatility, it is common for investors to panic and sell their investments, driven by the fear of further losses. Conversely, during periods of exuberance, investors may become overly optimistic and chase high-risk, high-reward opportunities, driven by greed.

These emotionally-driven actions can disrupt a well-thought-out financial plan and result in poor investment performance.

The 5 that I want to highlight are:

• Loss aversion - we tend to dislike losing something more than we enjoy gaining something of the same value

• Confirmation bias - we tend to favour information that supports what we already think and ignore or downplay information that contradicts it

• Herd mentality - people often go along with what others are doing or thinking, even if it might not align with their personal beliefs or judgments

• Overconfidence - people often believe they are more skilled, competent, or knowledgeable than they actually are

• Anchoring bias - we often use an initial reference point, or "anchor," to guide our thinking and subsequent judgments

To counteract these tendencies, it is essential for you to recognise and understand your emotions when making investment decisions.

By being aware of your emotional biases, you can take steps to mitigate their impact. Setting clear investment guidelines and sticking to a well-diversified portfolio can help mitigate the influence of emotions.

By staying disciplined, adhering to your financial plan, and seeking guidance from a trusted financial adviser, you can navigate the ups and downs of the market with a clear focus on your goals.

Markets reward discipline and I think that is why so many investors fail. Stick to your plan!

Feel like you could benefit from speaking to a financial adviser? Fill out the form on our website and we’ll match you with one of our hand-picked advisers.  

A message from Viola Private Wealth

Wealth isn't one-size-fits-all. Your investment strategy needs to work for your life and not just the markets.

Viola Private Wealth manages over $2.5 billion for Australians with significant wealth, crafting tailored portfolios across public and private markets. With deep expertise and a client-first approach, Viola helps you focus on what matters: growing and protecting your capital with clarity and confidence.

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