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August 2026

As we begin to wrap up the winter season, we can embrace the last of the cooler days and make the most of the opportunities the months ahead may bring.

July provided some welcome signs for the Australian economy, although inflation pressures persist. CPI eased to 3.8% in the year to June, down from 4.0% in May, supporting expectations that the Reserve Bank may be less likely to raise interest rates in the short term. But underlying inflation was unchanged at 3.6% because of persistent price pressures.

Consumer confidence improved a little, rising 4.1% to 83.9 in July. Despite the gain, sentiment is still deeply pessimistic.

Oil prices were volatile throughout July but ended well below the peaks reached earlier in the year.

Australian share markets finished the month stronger, with the ASX 200 moving above 9,000 points following the latest CPI figures. But caution in US markets following the Federal Reserve’s decision to keep rates on hold tempered sentiment.

The Australian dollar delivered a resilient performance throughout July to close above $0.70, hitting a six-week high.

AI is changing everything. Does your portfolio need to?

It can feel as if artificial intelligence (AI) makes its way into almost every conversation, and especially for investors. From headlines about trillion-dollar technology companies to predictions that entire industries will disappear, we are being bombarded with AI news, forecasts and investment themes every day.

For investors, the challenge is in determining who will ultimately capture the value and how to avoid concentrating portfolios around a handful of highly publicised winners.

The most sensible response may be the least exciting: stay diversified, invest regularly and resist the temptation to chase the latest AI headline.

Beyond the AI giants

Much of the media attention has focused on the companies developing AI models and infrastructure. These include “The Magnificent Seven” firms such as Nvidia, Microsoft, Alphabet, Apple, Amazon, Meta and Tesla, which are investing hundreds of billions of dollars into AI-related infrastructure and services.

These companies have obviously benefited from the AI boom. Nvidia, for example, has become one of the world’s most valuable companies because its graphics processing units (GPUs) power much of the world’s AI computing capacity.

But successful investing rarely comes from simply identifying a major trend. The important question is who benefits most and for how long.

History shows that new technologies often create value far beyond the companies that invent them. Railways, electricity, automobiles and the internet all reshaped economies, but the eventual winners were not always the pioneers that first captured investors’ attention and there were casualties along the way.

Categorising AI

Investors can think of AI opportunities in three broad categories.

The first category is the direct AI beneficiaries such as semiconductor manufacturers, cloud computing providers, data centre operators and AI software developers. These are the companies building the infrastructure and tools that enable AI.

The second category includes businesses that successfully use AI to strengthen their competitive advantages. These companies may not be seen as AI businesses, yet they stand to benefit significantly through higher productivity, lower costs, improved customer experiences and new revenue streams.

The third category includes businesses that indirectly benefit from AI-driven investment. Growing demand for data centres, computing power and electricity is creating opportunities for resource companies, energy infrastructure providers, network operators and industrial businesses.

Private equity and venture capital

Investors focusing solely on listed markets may be seeing only part of the AI story.

Beyond the listed market, many of the most innovative AI businesses remain privately owned. AI companies attracted almost half of all global venture capital funding in 2025, as investors backed startups developing applications in areas such as healthcare, robotics, autonomous systems, cybersecurity and enterprise software.ⁱ

For investors with access to diversified private market investments, exposure to venture capital and private equity can provide participation in AI innovation beyond the listed market. However, these investments typically involve higher risk and reduced liquidity.

The risk of AI ‘roadkill’

Every technological revolution produces winners and losers.

During the internet boom of the late 1990s, many investors correctly identified that the internet would transform society. What they got wrong was assuming every technology company would prosper. Many failed.

As with every major technological shift, AI is likely to leave some casualties behind.

Businesses that rely on repetitive information processing, basic content creation or undifferentiated software solutions may find themselves under significant pressure. Companies whose products can be easily replicated by increasingly capable AI tools could see profit margins erode.

The challenge for investors is that identifying future casualties in advance is rarely straightforward. That’s why diversification remains so important.

Why diversification wins

The biggest investment risk may be in becoming overexposed to a small number of companies that seem to be unbeatable today.

Technology leaders change over time. Diversification acknowledges this uncertainty.

Some of the strongest beneficiaries may emerge from unexpected areas such as energy infrastructure, industrial automation, logistics, healthcare or specialised software. Others may come from venture capital and private equity portfolios that provide access to innovations before they reach public markets.

Diversification also helps investors resist the temptation to chase every new headline. In a rapidly changing AI landscape, spreading risk across sectors, asset classes and business models may prove more valuable than trying to pick every winner.

i State of Venture 2025 | CB Insights Research

Life moves fast. Is your insurance up to speed

Life moves fast. Is your insurance up to speed?

Life rarely stands still. A new home, a growing family, a career change or the transition to retirement can all have a significant impact on your insurance needs.

Yet insurance is often one of those financial arrangements that gets filed away and forgotten. Over time, that can leave you underinsured, paying for cover you no longer need, or relying on arrangements that no longer reflect your circumstances.

That’s why it’s worth checking your insurance annually to make sure it still fits your life.

When life changes, check your cover

Many people take out insurance and then rarely look at it again. But the amount of cover that was appropriate five or ten years ago may not be suitable today.

Consider some common life events:

Buying, building or renovating a home
Getting married or entering a new relationship
Having children
Separating or divorcing
Taking on a larger mortgage
Starting or selling a business
Approaching retirement

Each of these milestones can change both the level and type of insurance you need. For example, a growing family may require increased life insurance to protect loved ones financially. Conversely, someone who has paid off their mortgage and whose children are financially independent may find they need less cover than they once did.

Check your valuations

One of the most common insurance mistakes is failing to update valuations.

Property values and replacement costs have risen significantly in recent years. Construction costs, building materials and labour expenses may mean that rebuilding a home after a major loss could cost far more than expected.

The same applies to contents insurance. Think about how many valuable items may have been added to your home over time, such as electronics, furniture, jewellery, sporting equipment or appliances. A quick estimate made years ago may no longer reflect the true value of your possessions.

Business owners face similar challenges. Equipment, stock, technology and business interruption costs can all change substantially over time.

A regular review can help identify potential gaps before they become costly surprises.

Are your beneficiaries still the right people?

Life insurance and superannuation death benefit nominations deserve particular attention.

The people you intended to benefit from your insurance years ago may no longer be the people you would choose today. Marriage, divorce, the birth of children, blended families and changing personal circumstances can all affect your wishes.

Reviewing beneficiary nominations regularly helps ensure your proceeds are directed according to your current intentions rather than outdated paperwork.

This is especially important after major life events. An old nomination that no longer reflects your circumstances can create unnecessary complications and stress for loved ones at an already difficult time.

Don’t forget income protection

Many people insure their home, car and contents, yet one of their most valuable assets is often their ability to earn an income.

Income protection insurance can help replace a portion of your income if illness or injury prevents you from working. As your salary, expenses and financial commitments change, it makes sense to review whether existing cover remains appropriate.

If you’ve recently received a promotion, changed careers, become self-employed or taken on additional financial responsibilities, your current level of cover may not provide the protection you expect.

Review your premiums and policies

Insurance products evolve over time and so do premiums.

A review may reveal that you’re paying for features you no longer need or that changes in your circumstances mean you require additional cover. It can also help you assess whether you’re receiving good value for the premiums you’re paying.

But it’s important not to focus solely on price. A cheaper premium may come with reduced benefits, stricter conditions or exclusions that limit protection when it’s needed most.

The goal is not necessarily to find the cheapest policy but to ensure you’re receiving appropriate value for the cover you have.

Major life events are a natural trigger to revisit your insurance. Even if nothing significant has changed, it’s worth checking your cover each year to make sure it still reflects your needs.

The best time to review your insurance is before you need it.

If your circumstances have changed or you can’t remember the last time you checked your cover, speaking with your financial adviser can help identify any gaps, overlaps or opportunities to update your protection.

Market movements and review video – August 2026

Stay up to date with what’s happened in the Australian economy and markets over the past month.

July provided some welcome signs for the Australian economy, with inflation easing more than expected last month, cooling bets of interest rate hikes in the short term.

Globally, shares delivered strong gains and Australian equities reached their highest level since early March.

However, risks  remain  elevated. Caution in US markets following the Federal Reserve’s decision to keep rates on hold tempered sentiment and served as a reminder of lingering inflation concerns.

Click the video below to view our update.

Please get in touch if you’d like assistance with your personal financial situation.