Are recession fears overblown?
The outlook for the Australian economy might not be as bleak as you think.
Alex Burke
April 18, 2019
The outlook for the Australian economy might not be as bleak as you think.
If you think that owning shares in each of the four big banks represents diversification and reduces the amount of investment risk in your portfolio, think again.
Australian investors tend to be exposed to assets that all respond in a similiar way to the same economic influences. Charlie Lanchester of BlackRock says successful investing relies on diversification, and not falling victim to this often unintended “concentration risk”.
Our thinking needs to change if we’re to cope with the economic challenges ahead of us, writes Vanessa Stoykov. In her blog, Vanessa explains why we should be looking to our industry leaders for help and why the delusions need to stop now.
With our series wrapping up over the weekend, it’s more than satisfying to know we reached well over 3 million people through their television sets or online. The message to Australians via our celebrity investor Blair McDonough was twofold: that a property strategy is not enough, and that a long-term financial plan is essential in achieving the financial and life outcomes you want.
Lower growth, lower interest rates, lower investment returns; these have been familiar phrases as the global lower-for-longer environment continues.
We live in a golden age of knowledge. The internet and the smartphone give us access to a mind-blowing amount of information and opinions world-wide. With this, we face a series of unique challenges like the bombardment of data that we are exposed to daily.
Stability of income is key in today’s lower for longer environment, and could be combated by a contrarian investment approach which takes opportunistic leaps into particular equities. This strategy enables Allan Gray to minimise volatility traditionally associated with equities by going stronger during market troughs and pulling back during peaks to address your clients’ income needs.
Highly predictable businesses may be able to provide investors with stable earnings forecasts, but they are lacking when it comes to value.
The success of the likes of Uber and Airbnb highlight how the biggest companies of today aren’t necessarily the ones with a 10 or 20 year track records, but those which can best identify and fill a gap in our current marketplace.
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