logo

Investment

Oliver’s Insights: Risk on, risk off

24 May 2013
From

This edition of Oliver’s Insights looks at the phenomenon of “risk on/risk off” that has seen listed growth assets like shares, corporate debt, commodity prices and the Australian dollar move together.

The key points are as follows:

  • The “risk on/risk off” pattern that has prevailed in investment markets since the global financial crisis (GFC) is showing signs of breaking down.
  • This reflects reduced risks associated with the US and Europe and should be seen as a good sign.
  • It means that individual assets and investments can go back to better reflecting their underlying fundamentals.
  • It should also mean that the benefits of having a diversified portfolio should start to become more evident in the years ahead.

To read this edition of Oliver’s Insights, click here.

Tags:         

Earn CPD Points

  • CPD: A TTR strategy for modern retirement

    We are currently witnessing one of the most significant demographic transformations in Australia’s history. Over the next decade, an estimated 2.5 million Australians are expected to enter retirement[1]. This article, [...]

  • CPD: Trend following in uncertain times

    Trend following strategies aim to generate returns by capturing sustained price movements across a diverse range of asset classes. Unlike traditional investment approaches that rely on valuation or forecasting, trend [...]

  • CPD: Aged care advice and ethics

    Data from the Australian Institute of Health and Welfare (AIHW) shows that Australia’s population aged 65 and over is projected to reach 22% – or 8.8 million people – by [...]

  • CPD: AI governance – a practical framework for advisers

    Regulator scrutiny of AI governance just got serious In years to come, they may well call it the ‘Mythos effect’ – the point in early 2026 where all the concerns [...]

  • CPD: Thinking outside the box – providing a loved one a paycheque for life

    Australia’s great wealth transfer is well underway. An estimated $5.4 trillion is expected to pass from those aged 60 and over to younger generations within the next two decades.[1] In [...]

View more CPD