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The medium term return potential for major assets - still constrained

  Author: Shane Oliver ( AMP Capital )
 August, 2014
  Price: FREE


While the global economy is looking better than it has for years, relatively low investment yields from most major asset classes mean the medium term return outlook remains constrained compared to the long term bull market in shares and bonds that started in the 1980s. For example, 7.5 to 8% pa for a diversified mix of assets, not double digits.

For investors the implications are: have realistic return expectations; asset allocation remains critical; focus on assets providing decent and sustainable income flows. Australian shares still remain attractive for income flows but for growth Asian ex-Japan shares come out best.

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