Why do Australian investors love property so intensely? That Australian investors love property as an asset class is not a revelation: the reason that it persists is only surprising to some – Is property the saviour that many seem to think? Property has its place in an investment portfolio, but… The following quotes are taken from a flyer recently distributed by a local real estate agent… ‘Every year, consumers are [...]
Investment Portfolio Diversification: what is it? ...and should you avoid over-diversification? Investment portfolio diversification is heralded as the way to minimise investment asset class risk in the seeking to achieve financial goals. Some question whether this portfolio construction philosophy can be taken too far. Is the diversification of your investment portfolio just a way for your financial planner to protect themselves (if it is in fact that at all!)? ...or is it [...]
Investment Market influences are economic Investment market influences are many and varied: economics is one of the most basic of the fundamentals that influence investment markets - and the focus of this article. But emotion, sentiment, 'information' and bias also have their effect (and they are mentioned in other posts in this website). Central Banks and Monetary Policy As most investors will be aware, Central Banks, such as the Reserve [...]
Market Reaction should be tempered as U.S. Government bailout package is not dead! Investment market reaction to the policy inadequacy of the US Houses of Congress overnight shows a high level of dissatisfaction - and frustration - on the part of investors. This article argues that more will be done and that investors may need to be patient. The announcement this morning that the US Government’s financial rescue package [...]
Investor risk profile review Is my investor risk profile standing the test? A periodically-reviewed investor risk profile ensures that your underlying investment philosophy can be appropriately applied to the asset allocation of your investment portfolio. It should help in your understanding of your reactions to market volatility on your portfolio; and give you peace of mind that your investments are being managed in accordance with your capacity to undertake investment [...]