Friend,

Here we go… 

Like scared animals, we humans tend to act / react, rather than reflect, when we are afraid.  

That action could wreck our financial future. 

We know this. Behavioural finance has told us for decades. 

So moments like this, matter more than most. 

If you haven't been building member understanding (about markets and themselves) before now, you're behind but you CAN still be useful. 

After today’s RBA rise, we can assume:  

• People under pressure often act from fear, not strategy 
• Some will get it right
• Many won’t 

We've got a rate hike, an austerity budget in the wings, and b@tshit crazy geopolitics screwing up the world. So investors and people with super will be acting, or thinking seriously about it. 

I reckon: 

1. This isn’t an education moment
2. It’s a guardrail moment 

This is because pressure changes behaviour. Our losses feel sharper and our instinct is to do something, now.

That shows up as: 

• moving to cash
• cutting contributions
• stepping away from markets  

Some of that is rational. Some isn’t. 

Our job isn’t to stop action, it’s to stop unthinking action.

What good looks like:

1. Reduce panic velocity

Slow decisions down. 

“These are the moments that can lead to big financial changes. It’s worth pausing before acting.” 

This creates space between reaction and action. 

2. Make consequences visible, lightly

That might look like saying, “Moves like switching fully to cash or stopping contributions for extended periods can affect long-term balances.” Then maybe prove that with some long-term graphs.

(I hope you were doing this already!) 

3. Preserve trust

To sound real right now, drop anything that’s corporate, detached or complex. Speak to what’s real, e.g. costs are up, many households are feeling financial pain and markets do move. 

Then remind us that: 

1. Super is long-term by design.

2. Time in, as well as timing, are factored in to our super.

3. Short-term decisions can carry long-term cost. 

If you’re brave, say the hard bit:

people who act poorly in moments like this often regret it. 

Before vs during 

The best time to educate to change behaviour is before the stress when we can explain volatility, build market understanding and time horizon discipline. The goal then is to set expectations so investors are behaviourally resilient to cycles. 

Now? 

Our communication can simplify, guide and help prevent avoidable mistakes. 

That’s the big test: whether your communication shapes behaviour.

Over to you. 

PS Made it this far? Drop me a line with a question for a future BC Brief 

Best,

Carden | she/her (here’s why that matters @work)

On our radar:

The other big story this week

RBA raises interest rates to 4.35pc as Chalmers blames war

The Reserve Bank of Australia raised rates to 4.35% for the third time this year, citing inflation pressures worsened by Middle East oil shocks, while Treasurer Jim Chalmers blamed the war for driving up costs and squeezing the economy.

New homes to receive carve-outs from CGT and negative gearing changes

The Albanese government’s upcoming budget will tighten negative gearing and scrap the 50% capital gains tax discount while exempting new homes to support housing supply and introducing a 30% minimum tax on trust distributions. 

PM leaves door open to tax offset for workers as Coalition raises inflation concerns 

The Albanese government is considering a $200–$300 tax offset for workers in next week’s budget as cost-of-living relief, while the Coalition warns it could add to inflation and is awaiting detail before responding. 

Get to know your journo

This week's market movers

Big plays, bold bets, and (occasional) unconfirmed speculation

Regis Resources and Vault Minerals to merge in $10.7bn gold deal– Merger between Regis and Vault, creating third-largest primary ASX-listed gold producer, worth almost $11 billion.

Chemist Warehouse lands in London after buying into British chain– Sigma Healthcare is taking Chemist Warehouse into the UK via a 75% stake in Greenlight Healthcare. 

NAB lifts provisions; Worley, Qube cut earnings due to Iran war– Middle East tensions are hitting Australian corporates, with National Australia Bank, Worley and Qube Holdings warning of earnings pressure.