Inflation in the 70s – baby boomer fantasy or nightmare? Why central banks must focus on getting inflation back down | AMP Capital

Inflation in the 70s – baby boomer fantasy or nightmare? Why central banks must focus on getting inflation back down   Key points The high inflation of the 1970s was bad for economies and bad for investment returns. The long-term downtrend in inflation and interest rates is likely over removing a tailwind for investment returns. But a return to sustained 1970’s levels of inflation appears unlikely. Introduction I grew up in the 1970s and it …

2020-21 saw investment returns rebound – expect more modest but still good returns this financial year | AMP Capital

2020-21 saw investment returns rebound – expect more modest but still good returns this financial year   Key points 2020-21 saw investment returns rebound after the coronavirus hit depressed 2019-20 returns. Key lessons for investors from 2020-21 were to: allow that share markets look ahead; timing markets is hard; don’t fight central banks; and turn down the noise. Over the next 12 months returns from a well-diversified portfolio are likely to be slower but still …