Asset Allocation in a Zero Interest Rate World
The current low level of interest rates provides investors with a very low starting point for forecasting future market returns.
This paper considers the role for alternative asset allocations in a 60/40 balanced portfolio in different economic scenarios over the medium term.
Webinar Q4 2020: 2021 – The Year of the Vaccine
Webinar Q3 2020: After the Pandemic Panic – What Comes Next?
Webinar Q2 2020: Staying Afloat in the Second Pandemic Wave
Missing Asset Class
Australian investors’ portfolios are commonly allocated between two extremes: low-risk cash and fixed interest at one end, and high-risk equities (predominantly Australian equities) at the other, leaving a rather large gap in the middle.
This is unfortunate, because there is an income-producing asset that sits comfortably in that gap. This is The Missing Asset Class.
Webinar Q1 2020: The First Pandemic Quarter!
Special COVID Webinar: Nothing Spreads Like Fear
Webinar Q4 2019 – 2020: Investing for the Next Decade (Not the Last One)
Better yields than bonds (with less risk than equities)
Investors are facing a common challenge: falling cash rates make it hard to earn a real return above inflation. Record-low yields on asset classes like cash (term deposits) and traditional fixed interest (government bonds) provide little investment income, while attempting to target similar returns from previous years may force investors to allocate into riskier asset classes such as equities, just as those markets are reaching new peaks.