How do hedge funds work in a volatile market?

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

How old is too old for insurance?

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

Impacts from Falling Home Prices: The Wealth Effect

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

Alternative Thinking: Diversifying Beyond Traditional Asset Classes

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

Why staying invested matters when markets fall

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

Booms, busts and investor psychology: Why investors need to be aware of the psychology of investing

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

Economic and market overview

Pleasingly, global share markets fared well in October and recovered most of their lost ground from September. Locally, the S&P/ASX 200 Index re- turned 6.0%. The sharp reversal in sentiment was typical of this year; market volatility has picked up meaningfully over the past few months, resulting in substantial swings in equity prices. Fixed income … Read more

3 things to consider if your Super balance falls

From time to time, market movements may cause your super balance to fall. While this can be alarming, you’ll find that it usually recovers in due course. However, if you feel like you need to make some adjustments to your super, here are three things to think about first. Consider how comfortable you are with … Read more