This article looks at some longer term structural trends in the economy and their impact on economic growth and investments. A decline in routine based jobs Fear of technology replacing jobs has been around for years, although concern around this risk appears to have waned in recent times, as impacts of the pandemic on labour … Read more

Risk assets performed strongly in January, following further indications that inflation may have peaked in key regions. Global economic growth forecasts were lowered by both the World Bank and the IMF, but investors appeared to brush off these concerns. Instead attention was focused on the central bank meetings, to see whether interest rates would continue … Read more

Key points 2022 was dominated by high inflation, rising interest rates, war in Ukraine and recession fears. This hit bonds and shares hard, driving losses for balanced growth super funds. 2023 is likely to remain volatile and a retest of 2022 lows for shares is a high risk. But easing inflation, central banks getting off … Read more

While an exposure to hedge funds can provide a lift to a portfolio’s performance, they also offer the potential to generate high returns – at a risk. Hedge funds play a very important role in investment markets and come in many shapes and sizes. Because of this, it’s important for investors to understand what they … Read more

As you age and your health starts to deteriorate, having a financial safety net and protecting your nearest and dearest may become even more important. So, how old is too old for insurance, and do you or your parents still need cover if they are nearing retirement or no longer have an income? The answer … Read more

The impacts of interest rate hikes on consumers are well known; higher interest means that mortgage debt servicing costs will go up which is negative for consumer spending. Rate hikes are also bad news for home prices, which will create another negative for households via the destruction of wealth and the associated “wealth effect”. Housing … Read more

Once a staple investment allocation, the traditional balanced portfolio of shares and bonds has had some challenges in delivering positive returns in today’s market environment. Institutional investors, such as superannuation funds and endowments have been investing in alternatives for many years and it is a rapidly growing asset class in the global investing landscape. Individual … Read more

It’s natural to feel nervous when markets fall. News about inflation and rising interest rates may prompt you to make an emotional investment decision. But history tells us that markets trend upwards in the long run – and switching investment options at the wrong time can have a negative impact on your overall long-term investment … Read more

Up until the 1980s the dominant theory was that financial markets were efficient. In other words, all relevant information was reflected in asset prices in a rational manner. While some think it was the Global Financial Crisis that caused faith in the so-called “Efficient Markets Hypothesis” (EMH) to begin unravelling, this actually occurred in the … Read more