The Managing Director of Entrust Wealth Management, Rowan Jones, came to talk about generating investment income in the context of the post Covid-19 environment, and it was a very interesting session for all present. We know that interest rates are extremely low at present, and this makes it hard to value assets and to generate income. Warren Buffett said that interest rates are to asset values what gravity is to matter, and this was shown in the USA after the global financial crisis when interest rates increased and ultimately the share market slumped. It has been said that rates won’t rise until 2024, but the US 10 Year Government Bond rate has been creeping up to counter inflation. If we do start to see rises in interest rates next year, it will cause a few headaches. Rowan presented some amusing anecdotes about his (“cash is king”) Grandmother to illustrate the point, but when rates are low the two basic questions that should be asked are: Do I maintain the same level of risk? or Do I maintain the same level of return? If one chooses the latter, the risk factor increases. The range of investment opportunities available in Australia is quite limited when compared with the USA, but there are a number of options that are available to counteract this fact. For example International Equities are now available to local investors, and one should choose stakes in industries that are thriving e.g. technology. There are also Property Trusts and Hybrid Securities, and many investment funds effectively hedge against currency fluctuations for their investors.