Financial Planner Sydney | Financial Services Sydney

27 Nov 2025

What Really Happens During a Market Downturn (and How to Stay Calm)

Posted by Dejan Pekic BCom DipFP CFP GAICD

So, you’ve noticed current market volatility. Having concerns about your investments is normal, but downturns are not unusual – and not a reason to panic.

Expansions and contractions, peaks and troughs; they’re all part of the economic cycle. Downturns have been happening for as long as there has been an economy. As history has shown us, they don’t last forever, and every downturn is followed by recovery.

Understanding the way the market moves is important so that you know what to expect, how to prepare and how to respond. With a solid financial plan, strategic investments – and calm – it’s possible to navigate any market downturn.

So, what actually happens during a downturn?

We’ve all seen the headlines when markets fall. It’s common to feel disappointment, even shock, and that’s why it’s helpful to understand exactly what’s going on.

A financial downturn is a period when prices fall across assets. It’s usually accompanied by increased market volatility, those unexpected swings that make the market harder to predict. A downturn is an economic slowdown.

There are various factors that impact downturns. Economic bubbles, with periods of inflated prices, will ultimately result in a price correction. Major world events – wars, natural disasters, the pandemic – can trigger market meltdown. Interest rate increases, accelerating inflation and government policies also play a role.

During these uncertain times, economic growth slows as people spend less and company profits decrease, lowering asset prices. We may see businesses cut jobs, which slows markets further. This can result in lower-than-anticipated returns and increased volatility.

There are specific terms to describe market phases. When a market is surging ahead, it’s a bull market (like the stampeding animal). When you have declines of less than 10%, it’s called a market dip. A loss of between 10% and 20% is a correction. Drops of 20% or more are called a bear market (picture the market hibernating). If that decline happens very quickly, it’s a crash. When economic growth declines for at least two consecutive quarters, you have a recession.

A downturn, then, is just one stage of market movement, and every market stage is just that: a stage. So, after every market downturn comes recovery.

Why downturns are normal

With a cyclical economy, downturns, like peaks, are guaranteed. To see this, we just need to look at history.

Unsurprisingly, we know the biggest market crashes best: the Wall Street crash of 1929, Black Monday in 1987, the dot-com bubble crash of 2000 and the Global Financial Crisis, to name a few. As mentioned, crashes are just one type of market activity. According to the S&P 500, there have been 13 crashes since the mid-20th century and 24 corrections. Investopedia lists 22 bear markets since 1929. Market dips are even more common.

In his 35 years as a financial planner, Dejan Pekic has seen plenty of ups and downs.

“When I started in 1991, we were in a recession. This was quickly followed by the bond crash of ’94. Then you had the Asian financial crisis of ’97, the tech wreck of 2000, closely follow by September 11. Just two years later was the second Iraq war. Jump to 2008 and everything was booming. Since then, we’ve had COVID, Ukraine and Trump, all influencing global markets.”

We can’t predict when downturns will arrive, or end. We do know that the best way to face a downturn is with patience, not panic.

How investors typically react (and why that’s risky)

Acting on fear during a market plunge is common. Dejan sees many clients instinctively rush to sell as soon as a downturn happens. That’s risky in a few ways.

The way investors react to market uncertainty can determine what happens next. It’s common for investors to panic, leading to mass sell-offs, which worsen a downturn. With plunging prices, acquiring a fair selling price can be hard.

Emotional reactions can also derail long-term goals. The best decisions come with perspective, patience and discipline. Diversified investments are key to compounding returns. Stay the course and you will see asset recovery.

Another consequence of emotional selling? Lost opportunity. The Newealth team are often busiest during major market dislocations – because this can be a great buying opportunity. Purchase when assets have plunged and you may be able to add to your portfolio at a bargain.

How to stay calm and stay the course

Downturns are a natural part of the economy, not something to be feared. Understanding that is the first step. Once you know that downturns and recovery go hand in hand, there’s more incentive to stay calm and stay the course.

Preparation is also key. We work with every client to create a tailored financial plan that best suits their personal goals. And we use value investing principles to focus on long-term financial security with a disciplined margin of safety.

Thinking into the future is another strategy to help you stay in control during a financial downturn. If you picture your long-term goals, there’s motivation to take a breath, refocus and move forward with confidence.

Financial expertise for every market swing

At Newealth, we’ve guided clients through every market cycle since 1991 – with clarity, transparency and discipline. Our approach isn’t about predicting the next move. Instead, we prepare for every outcome.

We use decades of experience and proven research strategies to steer you through market downturns and out the other side.

If you’re looking for perspective and a plan that stays steady through market noise, we’re here to help you stay the course with confidence.

General Advice Warning:
The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
Newealth Pty Ltd ABN 61 091 100 275 | AFSL 231297

21 Nov 2025

Most Australians Lacking Professional Financial Advice and Clarity on Life Insurance

Posted by Dejan Pekic BCom DipFP CFP GAICD

Australians’ confidence in financial security is eroding due to a combination of cost-of-living pressures, the associated mental health impact, and a lack of professional financial advice. This is a key takeaway of the State of Australia’s Safety Net 2025 Report, released by the Council of Australian Life Insurers (CALI).

The CALI 2025 Report, which paints a picture of working Australians struggling with rising living costs, details the mental health strain associated with financial and work pressures and a lack of financial clarity. This is impacting all generations, with mental health claims now the leading cause of TPD claims in Australia.

According to the report, just 8% of working Australians received personal financial advice on life insurance in the past year. Simultaneously, it found most Australians lack confidence in their understanding of insurance products.

While the report indicates close to half of the population trust online sources for financial information, a lack of tailored professional advice is placing people at risk of having inadequate coverage or unsuitable coverage for personal needs.

Interestingly, a large proportion of Australians are interested in accessing life insurance through superannuation, reflecting the important of holistic professional financial advice across savings, superannuation and insurance.

According to The State of Australia’s Safety Net 2025 report:

64% of Australians believe life insurance provides peace of mind and a financial safety net for life’s biggest challenges.
Only 8% of working Australians have received professional advice about life insurance.
One in three has no life cover at all – compared to 80% of Australians who hold car insurance.
34% of workers could only cover up to one month of regular living expenses if they couldn’t work.
And 69% worry cost-of-living pressures could make it harder to maintain protection.
Access to life insurance through superannuation is highly valued with more than two-thirds of working Australians rating it as important.

The CALI 2025 Report reveals that while Australians understand the value of life insurance, many remain underinsured due to cost pressures, confusion and limited access to advice. At Newealth, we help you close that gap – with clear, comprehensive and tailored financial advice. We ensure you and your family are protected no matter what life brings.

What Buffett’s Final Letter Teaches Us About Investing Well

Posted by Dejan Pekic BCom DipFP CFP GAICD

Warren Buffett’s final annual letter marks the close of an extraordinary chapter in investing – a small reminder of what truly matters in wealth creation. His teacher, Benjamin Graham gave him the principle foundations of investing which Buffet perfected. Through patience and discipline, Buffet was able to prove time and time again that those principles worked.

At Newealth we are guided by those same principles. We have been reading Buffets annual letters for decades – to remind him of those principles. That the market will have its highs and lows, but our job as advisers is to stay calm and focus on the long term. There’s no secret formula — just wisdom, discipline and consistency. The same qualities that built Berkshire Hathaway are the ones that guide how we look after our clients today.

While Buffet may be stepping back, it’s the lessons he and Graham have taught us that will continue to endure. Invest with reason, act with integrity and don’t let the markets moods dictate our decisions.

The Role of a Financial Adviser: More Than Just Investments

Posted by Dejan Pekic BCom DipFP CFP GAICD

Many people think financial advisers just pick investments, but investment advice is just one part of a much larger role.

A financial adviser’s role spans tailored and comprehensive financial counsel across investments, superannuation, retirement, cash flow and estate planning. A skilled financial adviser will expertly guide you through market volatility. And a trusted financial adviser will stay with you for years, ensuring you have the clarity and confidence to make sound financial choices at every life stage.

At Newealth, we’re a long-term financial partner. Yes, we focus on returns, but we also guide you through key milestones, changing priorities and complex decisions. Our expertise and support give you peace of mind to feel comfortable with your finances.

Guidance beyond the portfolio

Providing recommendations on savings or investments is one strand of a financial adviser’s role, but an expert adviser has a broader focus. At Newealth, we help you refine financial goals, formulate investment strategies and stay with you for years.

We provide comprehensive investment advice for life, from savings and investments to retirement and estate planning, superannuation and insurance recommendations. Our clients span families, business owners and professionals, including Catherine Parry, a retired solicitor who has been with Newealth since 2014.

“When I started with Dejan, it’s safe to say my financial position was less than ideal. It was pretty bad, to be honest. And with no judgement at all, Dejan just shone a spotlight on all the dark recesses of my balance sheet. He made me feel that it was something that could be tackled with a plan. And we drew up a plan, and we tackled it, and I’ve never looked back.”

Comprehensive and tailored financial planning, with ongoing support, gives you the best shot at financial success. Whether you’re looking to start a family, buy a home, pivot your career or step into retirement, strategic planning and guidance will help you stay in control of your finances.

Navigation through market volatility

Volatility is part of financial markets. It’s always been there and always will be. It’s also natural for market crashes to trigger panic. The good news? You can always navigate market swings and even find opportunity in volatility.

A financial adviser’s role is to help you calmly navigate the unforeseen and manage your finances in every situation. As wealth management specialists, the Newealth team know the best way to handle market volatility is with considered, diversified investment strategies and a disciplined margin of safety. We also take advantage of market downturns to recommend quality assets at lower prices, and we only invest with the level of risk that every client is comfortable with.

“[Dejan’s] depth of knowledge of financial markets and how to manage one’s appetite for risk or not, as the case may be, is excellent. You really feel you’re being safely guarded,” adds Catherine.

Market crashes are guaranteed to happen, and preparation is key. Our careful and holistic financial planning helps you replace uncertainty with confidence.

Support for financial confidence

At Newealth, we focus on relationships, not transactions. We provide expert, objective and transparent financial planning services – and we empower you to make informed financial choices.

Steve Camillo, a retired architect, has been with Newealth since 2016.

“In my career, I was responsible for projects worth hundreds of millions of dollars. I was comfortable with that because I knew what I was doing. What I hadn’t been trained to do was do my finances, and that’s where Newealth and Dejan stepped in,” explains Steve.

“I know I can ring Dejan at any point in time and say, ‘What’s going on here?’, ‘I don’t understand this particular thing’ or ‘Should I be doing this?’. He gives me my sanity back and calms me down, and that service is invaluable.”

Expert financial planning is more than crunching numbers. Robust support and trusting relationships are a crucial part of a financial adviser’s role.

Strategic partnerships for financial security

A certified financial planner with over 35 years in the industry, Dejan Pekic knows that great financial advice changes lives.

We work with professionals, families, retirees and small business owners. We help you create a personal financial plan, formulate investment strategies and support you to help you reach your goals.

At Newealth, we see a financial adviser’s role as much more than numbers – it’s about partnerships. We guide you through every life stage with transparent, disciplined advice and a focus on what truly matters.

If you want a financial relationship built on trust, clarity and long-term perspective, we’re here to help you plan with purpose.