Investors face an escalating crisis in Europe and slowdowns in the United States, Australia and China. Making it worse, this unsettling outlook follows a period of poor investment returns. Share markets are plunging once more and government bond yields in Australia and the United States are hitting record lows. Andrew Pease, Chief Investment Strategist, Asia Pacific, reveals why equities will bounce back.
Whether you’re a new or experienced investor, the temptation to chase short-term returns can be hard to resist. This table illustrates how different asset classes have performed relative to a multi-asset portfolio diversified across multiple assets, strategies & managers (with an average exposure of 70% growth assets).
Most Australians are invested in the sharemarket as part of their superannuation savings. The average super investment will comprise a mix of shares, government and corporate bonds, cash, and some 'alternative' asset classes such as property and commodities. This means any volatility in the sharemarkets will be felt to some degree in superannuation.