It’s the beginning of a new financial year.
Last financial year some investors did really well and others didn’t.
So what are the overriding trends for the financial year ahead of us?
In this short (2 minute) video Dr Shane Oliver, AMP Capital’s Chief Economist and Head of Investment Strategy, shares his top 3 things that investors should look out for.
While his message isn’t specifically property related, it’s still very relevant for anyone interested in real estate, business or entrepreneurship.
What three things should investors look out for in the financial year?
- Bank interest remains low – investors can expect low returns from their bank deposits as rates remain low for the near future. Investors won’t grow their capital with bank deposits; so it’s important to consider growth assets in this low yielding environment and diversify.
- Global growth – current markets conditions are supportive of growth assets. As global growth, albeit sluggish, has been the story for the past 12 months – and will likely continue. Rental yields, share markets, commercial property and infrastructure will all benefit from this trend over the next 12 months.
- Turn down the noise – short-term events which can blow investors off course from their longer-term financial strategy. Geopolitical events, including elections across Europe and the US, are all important, but don’t tend to have a lasting impact on investments or portfolios over the long term. Investors should stick to their flight plan.
Source: AMP Capital
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