How to make the most of investment and economic research
In a world where people can be bombarded with information, AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver recommends taking a strategic approach to investing.
“If you are to be a successful investor you have to have an investment process,” says Oliver.
The trick, he says, is cutting out the noise and sticking to the fundamentals.
- AMP Capital’s approach is to look at five key indicators:
- Valuations – whether they are expensive or cheap
- Where that asset class is in the cycle
- The liquidity backdrop, specifically what the central banks are doing
- Sentiment. “If everyone in the class is bullish that worries me a little bit,” notes Oliver. “That means there may only be one way for the asset to go and that’s down.”
- Chart points or technical analysis. “It’s useful to have several sources of quality research but you need to have a process to filter that information,” Oliver says.
About the Author Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP Capital is responsible for AMP Capital’s diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.
Important note: While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) make no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. © Copyright 2017 AMP Capital Investors Limited. All rights reserved.