Earlier this week I sat down with AMP’s Deputy Chief Economist Diana Mousina to hear her reflections as we close the financial year and what’s to come. Lots of people are doing it tough with rising interest rates and inflation, and the economic volatility doesn’t look like it’s going away soon. A really insightful chat with Diana where we touch on household spending, a potential recession in Australia and what the economic environment means for …
Expect slower medium-term returns Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. At least it’s still better than sub 1% bank deposit returns. The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets …
Econosights: The outlook for the global economy Key points Our forecasts anticipate a solid rebound in global GDP growth over 2H2020 across developed economies from re-openings after strict national lockdowns, better management of COVID-19 cases and continued policy support. A cyclical upswing is evident in US indicators of manufacturing, industrial production and housing. Vaccine developments provide upside and downside risks to our views. Our current growth forecasts assume that a vaccine is available by …
2019-20 saw poor returns – but it could have been much worse Key points 2019-20 saw a rough ride for investors as coronavirus hit resulting in small losses for well diversified investors. Key lessons for investors from the last financial year were to: maintain a well-diversified portfolio; timing market moves is hard; beware the crowd; turn down the noise; and don’t fight the Fed. With coronavirus risks still high, investment markets may see more short-term …
The US presidential election – implications for investors Key points The run up to the US election on 3rd November has the potential to see increased share market volatility if it looks increasingly likely Biden will win and if Trump ramps up tensions with China (and maybe Europe) in response. However, this is likely to be short lived as there is no reason to expect a weaker economy and hence share market under a Biden …
Retiring within the next 5 – 10 years The combined effect of earlier retirement and living longer means that many Australians will spend more than a quarter of their life in retirement. While this sounds like good news, it does emphasise the importance of planning carefully – and well in advance – for your retirement. Some questions you may wish to consider include:• How much do I need to retire on? When can I …
