January 2026

As we begin 2026, we extend our warmest wishes for a year filled with health, happiness and success. We look forward to embracing fresh opportunities and new possibilities.

We start the year with the release of the latest inflation data. While figures were lower than expected, economists remain divided about a February rate hike.

There was a larger-than-expected fall in the consumer price index to 3.4 per cent, with the Reserve Bank’s preferred measure of trimmed mean inflation down to 3.2 per cent.

While consumers were cautious in the lead-up to Christmas, with the Westpac–Melbourne Institute Index slipping from 103.8 in November to 94.5 mid-December, early reports show sales over the Christmas period were up on previous years.

Unemployment remained at 4.3 per cent and equity markets closed the year solidly with the ASX 200 up by almost 10 per cent (including dividends), although still short of its October high.

Looking ahead, all eyes will be on the RBA’s February interest rate decision as well as the fallout from the US attack on Venezuela.

2025 Year in review: It was a soft landing for Australia

Many investors breathed a sigh of relief at having survived (and even thrived) the turbulent economic and political events of 2025.

Super funds posted strong double-digit returns for the 2024-2025 financial year. Australia recorded modest economic growth, while inflation cooled a little throughout the year – albeit with a slight uptick at year’s end – and house prices surged before hitting the brakes in December. Share markets reported respectable gains locally and some surging profits globally. 

The big picture

Markets and economies around the world have danced to the tune of the Trump Administration’s second term in office and reacted to wars and unrest in the Middle East and Ukraine.

The US President’s often surprising policy twists and turns, particularly a punishing new tariff regime, saw markets falter and exporters of goods and services to the US plunged into uncertainty.

The Australian dollar reflected the choppy conditions, hitting lows just under 0.60 USD in April before recovering slightly by year-end at just under 0.67 USD, this was buoyed by our strong iron ore exports and the growing demand for lithium, copper and rare earths.ⁱ

The artificial intelligence revolution was another feature of the year, driving US share markets ever higher with some fearing the bubble is overdue to burst. 

Economy

Inflation’s stubborn resistance to the Reserve Bank’s measures to bring it down could lead to further interest rate rises in 2026.

The Consumer Price Index in January recorded an annual rate of 3.4 per cent, down 0.4 per cent on the previous month. The RBA’s flexible inflation target aims to keep the cost of living increases between two and three per cent.

The cash rate began 2025 at 4.35 per cent but after three cuts during the year, it was down to 3.6 per cent in December. The RBA is due to meet in February to consider its next move.

In the US, the Federal Reserve also cut rates three times, putting the interest rate to a range of 3.5 – 3.75 per cent.

The Australian economy grew 2.1 per cent in the year to September in a massive improvement on the previous year’s growth of 0.8 per cent.

Property

After two uneven years, home values surged again in 2025 by 8.6 per cent, adding about $71,500 to the national median.ⁱⁱ

It’s the strongest calendar year performance since the remarkable 24.5 per cent increase in 2021.

However, values softened in December, recording the smallest monthly increase in five months.

Darwin delivered the best performance with an 18.9 per cent gain in values during the year while Melbourne took the wooden spoon with a 4.8 per cent increase.ⁱⁱⁱ

Share markets

Global equity markets proved that they could thrive, even in a higher-interest rate environment, and the AI revolution moved from the hype phase of the previous year to serious players in 2025.

While ‘The Magnificent Seven’ tech stocks have long ruled the S&P 500, in 2025 just two outperformed the index with a gain of 64.8 per cent for Alphabet and 38.9 per cent for Nvidia.^iv

It was a slower pace for Australian markets with the S&P/ASX 200 delivering a solid total return of 6.8 per cent. While the big banks faced some pressure on margins as interest rates peaked, the materials sector was supported by the global energy transition. Dividend yields remained attractive, continuing Australia’s tradition of providing reliable income for retirees and SMSFs.

Commodities

Precious metals drove commodity values in the past year with investors looking for security amid interest rate movements and geopolitical tensions.

Silver was up by an astonishing 182 per cent during the year, but a sell-off in December saw the price finish the year with a 147 per cent gain.^v

Meanwhile, gold’s safe haven status during times of uncertainty saw it jump by 65 per cent during the year.

Looking ahead

It seems likely the issues that dominated the financial markets in 2025 may continue to shape performance and returns this year.

Global politics and war are likely to move commodity prices and equity markets while the contrariness of US foreign policy will both spook and buoy investors.

In Australia, all eyes will be on the RBA, with high levels of speculation as to where interest rates will be heading in 2026.

i Australian Dollar | Trading Economics

ii Home Value Index: Softer landing after strong 2025

iii Home Value Index: Softer landing after strong 2025

iv Which Magnificent 7 Stock Had the Best Year in 2025? | Investing.com

Designing the future, you want

As we tick over into a new year, many of us feel the instinctive pull for change – a desire to feel better, do better and make life feel more aligned to our values and goals. While this wave of motivation is in full force, it can quickly fade if you don’t have direction and a plan in place.

Thoughtfully planning out what it is you want to achieve and how you go about achieving it, can provide clarity and structure and ensure you stay on track.

As we look toward to the year ahead, now is the perfect time to set out a framework that supports lasting progress, not for the first few months, but throughout the whole year.

We explain how setting realistic goals can help you grow, stay motivated and create a year you can be proud of.

Reflecting on the past

Before we start to look forward, we must look back. Reflect on what you achieved in the past year – think about where you felt a sense of accomplishment as well as the areas that you may have fallen a little short and may need improvement for the year ahead.

Writing each of these down makes it easier, so you can avoid repeating the same patterns, especially for the things that didn’t go according to plan.

Next, you need to align your goals to what matters to you. What are your true values? Many goals are set based on what we think other people expect or what we think we should be doing. If you’re creating goals for these reasons, you are probably setting yourself up for failure.

Some considerations for values that are important to you could be health and well-being, career growth, family and relationships or financial stability.

Building the framework

Now, we’ve all heard about setting SMART goals (Specific, Measurable, Achievable, Relevant and Time- bound), but what about ‘systems’?

Author of Atomic Habits, James Clear, states that when we are not achieving our goals, or breaking certain habits, it may not be about the goals that are being set but the system we are using to achieve the goals.

Clear uses a framework called Four Laws of Behaviour Change, which set rules around achieving goals, or breaking bad habits. The four laws are as follows:

Law 1 – Make it obvious

Law 2 – Make it attractive

Law 3 – Make it easy

Law 4 – Make it satisfying

These laws are designed to create a simple, effective framework to keep you focused on your goals.

Implement and execute

Here are some examples of how you can use this system to create simple habits to achieve your goals.

Law 1: Make it obvious

• Design your environment so the cue for your habit is right in front of youExample: Put your gym clothes on the bed the night before

Law 2: Make it attractive

• Pair habits with something you enjoyExample: Only listen to your favourite podcast while walking

Law 3: Make it easy

• Reduce friction-make habits as convenient as possible
• Start small:
  • Do 2 push-ups
  • Meditate for 1 minute

LAW 4: Make it satisfying

• Reward yourself immediately after the habit
• Track habits so you feel progress
• Create a “don’t break the chain” streak

Cultivating small daily habits will keep you motivated. Fostering sustainable habits and seeing the gradual change each day will give you the dopamine hit you need to continue on your journey. When you start to feel overwhelmed, the process feels like a hard slog, and you are less likely to stick to it.

Remember, you don’t need to overhaul your life, it’s about creating small habits that are going to be more manageable to help you achieve big goals, whatever they may be.

Set yourself up for kicking goals

Setting goals for 2026 is an opportunity to shape your life intentionally rather than drifting through the year on autopilot, which we tend to do if we don’t carefully and thoughtfully plan ahead.

With reflection, clarity, systems, and flexibility, your goals can become powerful tools for transformation. Start early, stay curious, and give yourself permission to evolve along the way.

Here’s to a purposeful, aligned, and fulfilling 2026.

The silent partner in your wealth plan

When you think about building wealth, you may picture investments, property and superannuation. But there’s another critical element: insurance. It’s the silent partner in your financial strategy, quietly working behind the scenes to protect everything you’ve built.

Strategic asset allocation is the hallmark of a robust wealth plan, using diverse holdings to build long-term financial success.

Yet, defending a portfolio against unforeseen events and ensuring a smooth estate transfer is just as vital. That’s where targeted insurance solutions come in.

Far from being just a safety net, insurance can be a tool that preserves your assets and keeps your plans on track even when life delivers the unexpected.

Insurance can help to create a more resilient wealth plan, especially for those with complex estate considerations. In other words, the right cover can make all the difference between maintaining your lifestyle and facing financial hardship.

Safeguarding your family

Life is unpredictable. Illness, injury or premature death can derail even the most carefully designed financial plan.

The risk is magnified if wealth is concentrated in illiquid assets such as private business interests or large property holdings. Beneficiaries often need immediate access to cash to cover any outstanding debts, taxes that may be owing, and to manage business continuity. If funds are not available, the executor may be forced to sell the core portfolio, or business assets quickly, and potentially at a loss.

That’s where life insurance, Total and Permanent Disability (TPD) cover and trauma insurance can play an important role as a structural defence mechanism for a portfolio and an estate.

Life insurance provides a lump sum to beneficiaries after your death, allowing them to secure their future. TPD cover steps in if you suffer a permanent disability and are unable work again, providing the funds for medical care and living expenses. Trauma insurance covers serious illness such as cancer or heart disease, giving you financial breathing room during recovery.

Income protection insurance is another valuable way of providing income if illness or injury stops you from working. It pays up to 75 per cent of your income and helps you to avoid dipping into your savings or selling assets at the wrong time.ⁱ

These policies can mean peace of mind for families, helping to protect assets and ensuring that wealth transfers happen as you intended.

Protecting your business

Insurance is also a cornerstone of small business risk management strategy.

Assessing and managing risks may highlight the need for a range of insurances such as flood and fire, theft, public liability, professional indemnity and cyber liability. These covers can help to defend your business against the crippling expenses that may follow unexpected events.

Risks can also be personal.

Business partners can use life insurance policies to safeguard their interests in case one business partner dies, providing the funds to buy the partner’s share of the business from their estate. Without a policy, the surviving partner may struggle to buy out the deceased’s share, forcing a quick sale of the business at a discount. With the right cover, the transition can be smoother, preserving value for the families involved.

Meanwhile, key person cover helps to protect against the financial impact of losing a vital team member to illness or if they die. In the event of a claim, the business will receive the insurance benefit.

Car, home and contents

If your car was stolen or damaged, will your insurance cover its replacement? If your home was completely destroyed tomorrow, do you have adequate insurance to rebuild as well as buy new furniture and fittings? These are things you need to consider when taking out insurance.

Reviewing your cover

Life changes and so should your insurance. Too little cover in any area of your life could leave you exposed, too much could mean unnecessary premiums.

Regular reviews can ensure your various insurances fit with your goals and current circumstances. It’s about having the right cover at the right time.

Insurance doesn’t generate returns, but it protects the foundation of everything you’ve built. Without it, one unexpected event could unravel years of planning.

A few smart decisions now can make all the difference when life doesn’t go according to plan.

Please call us to talk about how your current cover fits with your financial strategy.

i Income protection insurance – Moneysmart.gov.au

The Gut-Brain Connection in Kids: Can Food Really Help Heal the Mind?

In today’s world, more children than ever are struggling with their mental health. ADHD, anxiety, depression, autism spectrum disorders—these conditions are on the rise, leaving parents searching for answers that go beyond prescriptions and quick fixes. What if one of the most powerful tools to support a child’s emotional and mental wellbeing is something as simple—and profound—as what’s on their plate?

Welcome to the gut-brain connection: a revolutionary shift in how we understand children’s mental health. And yes, food really can help heal the mind.

The Gut-Brain Connection in Kids

Did you know your child has two brains?

Not in the science-fiction sense, of course. But the gut—home to trillions of microbes—is so rich in neurons and so closely linked to the brain that scientists call it the “second brain.” This gut-brain axis is a two-way communication highway, and what happens in the gut can directly influence mood, focus, and behavior.

This means that inflammation in the digestive tract, imbalanced gut bacteria, or food sensitivities might not just show up as tummy troubles. They can show up as mood swings, anxiety, poor concentration, even sleep issues.

The Food-Mood Connection in Kids

More and more research is confirming what functional medicine experts like Dr. Mark Hyman and Dr. Tom O’Bryan have been saying for years: food isn’t just fuel—it’s information.

Certain foods can send calming, healing messages to the body and brain. Others can trigger inflammation, stress hormones, and neurochemical imbalances.

Here’s how food influences mental health in children:

Ultra-Processed Foods & Sugar: Linked to mood instability, aggression, and brain fog. Many ultra-processed foods also harm the gut microbiome.

Artificial Dyes & Additives: Common in kids’ snacks and cereals, these have been associated with increased hyperactivity and behavioral issues.

Gluten & Dairy Sensitivities: In some children, these can contribute to leaky gut and neuroinflammation, which may worsen symptoms of ADHD or anxiety.

Omega-3 Fats: Found in wild fish, flaxseeds, and walnuts, these healthy fats are crucial for brain development and mood regulation.

Protein: Found in lean meats, dairy, nuts, seeds, fish and legumes, protein supports the gut-brain axis by providing essential amino acids that fuel neurotransmitter production, helping regulate mood, focus, and behavior in children.

Fermented Foods & Probiotics: These nourish beneficial gut bacteria, supporting a healthy microbiome—and a more balanced mind.

The Microbiome-Mind Connection

The gut microbiome—the ecosystem of bacteria living in the digestive system—plays a key role in producing neurotransmitters like serotonin, dopamine, and GABA, which directly affect mood and focus. In fact, about 90% of serotonin is produced in the gut.

When a child’s microbiome is imbalanced (a condition called dysbiosis), it can lead to emotional dysregulation, irritability, and even symptoms that mimic psychiatric disorders.

So what can parents do? 

It starts with getting back to basics. Functional and integrative medicine practitioners recommend a whole foods diet focused on:

• Fresh fruits and vegetables (especially leafy greens and colorful veg)
•  Quality proteins (organic poultry, grass-fed meats, legumes)
•  Healthy fats (avocados, nuts, seeds, olive oil)
•  Fibre-rich foods to feed good bacteria
•  Removing or reducing processed foods, added sugars, and artificial ingredients

Even small shifts can make a big difference in a child’s behavior, sleep, and emotional regulation.

 Of course, food is just one piece of the puzzle. A truly holistic approach to mental health also includes:

•  Identifying and addressing nutrient deficiencies (like zinc, magnesium, Omega 3s, or B vitamins)
•  Supporting detoxification pathways
•  Creating calm, screen-free environments
•  Healing trauma and stress through connection, therapy, and mindfulness
•  Working with practitioners who seek root causes, not just symptom suppression

What this new wave of research and clinical experience is showing us is deeply empowering: mental health is not set in stone. And for children, especially, the earlier we intervene with supportive nutrition and lifestyle choices, the more profound the healing can be.

Food is not the whole answer—but it is a powerful place to begin. Because when we nourish a child’s body, we also nourish their mind.

Source:
Reproduced with the permission of the Food Matters team. This article by THE FOOD MATTERS TEAM was originally published at https://www.foodmatters.com/article/the-gut-brain-connection-in-kids-can-food-really-help-heal-the-mind

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