Investment – Page 26

‘Volatility comes in clusters’: Dermot Ryan

‘Volatility comes in clusters’: Dermot Ryan Investors glued to their share portfolio screens recently following the abrupt share market selloff should expect to experience more of the same in the months ahead, according to Dermot Ryan, AMP Capital Income Equity Fund Co-Portfolio Manager.While more volatility can mean higher levels of anxiety for some investors, it can also bring opportunities to those able to stay calm during these periods, Ryan adds. “Volatility, where we haven’t seen …

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Correction time for shares?

Correction time for shares? Key points The US share market is long overdue a decent correction. This now appears to be unfolding and may have further to go as higher inflation, a slightly more aggressive Fed and higher bond yields are factored in. This will impact most share markets including Australian shares. However, in the absence of an aggressive 1994 style back-up in bond yields or a US recession – neither of which we expect …

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Higher global inflation and higher bond yields – what’s the risk and implications for other assets?

01 February 2018 Higher global inflation and higher bond yields – what’s the risk and implications for other assets? Key points Rising global growth and rising commodity prices indicate the risks to inflation are gradually moving to the upside. This is most acute in the US with the Fed likely to raise rates more than the market expects this year. This supports the view that the 35-year super cycle decline in bond yields is over. …

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The risk shares and bonds will no longer correlate

19 January 2018 The risk shares and bonds will no longer correlate There is an old saying that “diversification is the only free lunch in finance”. While this adage is often wrongly attributed to Harry Markowitz, it does a great job of articulating the essential insight in his Nobel Prize winning research. What people who’ve followed Markowitz’s know is the attractiveness of an asset in a portfolio doesn’t just depend on its own expected return …

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Sports lovers enjoy better financial fitness

Sports lovers enjoy better financial fitness If your golf clubs have been under wraps or your tennis racquet has been tucked away for some time, it could be worth dusting them off. Research by AMP found Australians who play sport regularly are 64% more likely to achieve their financial goals than those who don’t. With the weather warming up, plenty of us will be thinking about getting in better shape. That can mean heading outdoors …

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The world economy in 2018 – how much longer can the global upturn last?

The world economy in 2018 – how much longer can the global upturn last? Key points The global economic environment and corporate profits remain in a strong position and economic growth in 2018 will run at its fastest pace since 2011. It’s too early to fear a significant lift in global interest rates. Central banks in Europe and Japan will keep interest rates unchanged in 2018. US rate hikes will continue. Inflation is likely to …

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2018 – a list of lists regarding the macro investment outlook

2018 – a list of lists regarding the macro investment outlook Key points 2018 is likely to remain good for diversified investors. The investment cycle still favours growth assets over cash and bonds. But expect more volatile and constrained returns as US inflation starts to turn up. Watch US inflation, bond yields, President Trump, the Italian election, China, the Sydney and Melbourne property markets and global business conditions PMIs. Introduction Although 2017 saw the usual …

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Why we’re thinking about yield all wrong

Why we’re thinking about yield all wrong No doubt about it, institutions will have an edge over the Average Joe or weekend warrior when it comes to information and investment insights; financial institutions employ the best and brightest and draw on research garnered from all over the world using tools out of the reach of most of us individually. But there are times when it makes sense for individual investors to play to their strengths …

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Could last year’s strong equity returns keep on rolling?

Could last year’s strong equity returns keep on rolling? Aussie battler On the home front, the economic cycle in Australia is less advanced than in other developed economies. Activity remains subdued as housing investment moderates and consumers remain cautious on account of anaemic wages growth. Nonetheless, the preconditions for an improvement in growth are in place. Business confidence has improved and there is evidence of broad-based acceleration in business investment. At the same time, large …

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If you’ve always thought property prices only go up…

If you’ve always thought property prices only go up… It may be time to reconsider some myths about property investment. With so much emphasis on property in the media, it can be difficult to sort fact from fiction. But before investing in any type of asset—including property—it pays to consider the pros and cons, and any commonly held misconceptions. Here we bust 3 property myths. Myth 1: Prices always go up Believing that property always …