Saturday, December 21, 2024

Asset Classes, Asset Class Returns

1-22 out of 22 results.
Australian shares Asset classes, asset class returnsStock market crashesInvestment bubbles/busts, cycles
We're half-way through the 2020s decade! Here's the half-time score check on Aussie shares

The decade half-time score check for the Aussie share market is not that good: Aussie shares are having a below-average decade so far (and below other markets eg the US). It has been below average all decade – after a poor start with the 2020 Covid lockdowns. But all is not lost – some past decades also started out slow but ended up with good full decade returns. There is plenty of time left this decade for the next big speculative boom to lift the share market – history is on our side!    

Ashley Owen Dec 16, 2024
Financial MarketsAsset classes, asset class returnsInternational sharesCrypto
November 2024 snapshot: Trump, Gold, & Bitcoin!

Here is my essential snapshot on global markets for Aussie investors.  The Trump circus continues - and a new era of crony capitalism. Share market up - heading for another cracking year. Interest rates & inflation - down everywhere but here. Gold & Bitcoin shine - but which is better?

Ashley Owen Dec 01, 2024
Financial MarketsInflationInterest ratesAsset classes, asset class returns
October 2024 snapshot: shares & bonds fall as Trump takes lead in polls

Here’s my snapshot on global markets for Aussie investors – including my Top 5 factors moving markets. What is the big policy difference between Trump and Harris that is moving markets?  Why have gold and bitcoin been the best asset classes this year?  Will the Fed and RBA cut rates this week?  

Ashley Owen Nov 04, 2024
Financial MarketsAsset allocation, portfolio constructionAsset classes, asset class returns
3/4 time score check: 2024 - Great returns despite constant 'recession' fear mongering

Here's my 3/4 time score check on asset class returns to September 2024.  Almost all are positive and ahead of inflation.    Most are doing better than their long term average returns.  Which are the best and worst?   How is the end of year shaping up? 

Ashley Owen Oct 05, 2024
Asset classes, asset class returnsAsset allocation, portfolio construction
Another good financial year for lazy investors! How did your returns stack up?

Today's chart shows returns from the main asset classes and sectors for Aussie investors for 2022-3 and 2023-4, including returns from a standard, passive 70/30 'growth' portfolio mix. How did your returns stack up? 

Ashley Owen Jun 30, 2024
Australian shares International sharesBondsAsset classes, asset class returnsInflation
May 2024 Snapshot: Inflation, trade wars, but shares stronger. How is your 2023/4 year shaping up?

May 2024 Snapshot: inflation sticky, trade wars escalate, but shares heading for another good year. How is your 2023/4 year shaping up?

Ashley Owen Jun 02, 2024
Managed fundsAsset allocation, portfolio constructionAsset classes, asset class returnsInvestment & Wealth Mgmt
Active fund managers continue to destroy value and line their pockets with your money - Why?

Active fund managers are almost universally useless. Here is my updated report on how much wealth they destroy for Aussie investors. Are they getting any better? Why do we let them take $4.5b from our pockets every year? Where does the money go? How much do they pocket? How much do they just throw away through incompetence?  

Ashley Owen May 22, 2024 4
International sharesBondsAustralian shares Asset classes, asset class returnsInterest ratesInflation
April 2024 snapshot - rate cut hopes finally dashed - is this the big one?

Here is my essential 1-page snapshot for Aussie investors - covering Australian and US share markets, short- and long-term interest rates, inflation, and the Aussie dollar. Share and bond markets fell back a little as investors finally realised that central banks are not going to cut rates hard and fast.  'Is the is the start of the big correction?' - or 'Are we done for now?

Ashley Owen May 02, 2024
Stock market crashesInternational sharesAsset classes, asset class returns
Margin Lending boom-bust signal of share market over-confidence - Not flashing red yet

  I have never used or recommended margin lending, but margin lending volumes are a great barometer of boom-bust cycles. Where are we now in the cycle? Are we near the top of the market?

Ashley Owen Apr 28, 2024
International sharesAsset classes, asset class returns
US Shares vastly over-priced + primed to fall - What will the trigger be?

The US share market hit new record highs at the end of March but has retreated a little in April. is this enough of a correction? Is the market still expensive? Is it the start of the next big correction? Here is my update on the US 'CAPE' ratio and what it means for returns  

Ashley Owen Apr 22, 2024
Managed fundsInternational sharesExchange Traded FundsBondsAsset classes, asset class returnsInflation
The Low Inflation era of great returns is over. Investing just got a whole lot harder!

Investors enjoyed unusually high returns in the past couple of decades because EVERY asset class posted above average returns when inflation was low. A blind-folded monkey with a dart board picking any random mix of asset classes would have done well!   But that era of great returns from low inflation is over.  What types of assets do best in different inflation conditions? What is the best inflation hedge? How to build long term portfolios for high(er) inflation?

Ashley Owen Apr 16, 2024
International sharesBondsAsset classes, asset class returnsAustralian economy
March 2024 Snapshot - Shares keep rising despite strong economy + sticky inflation

March 2024 snapshot – Fed + RBA warn inflation not yet contained, but shares keep surging Here is my essential 1-page snapshot for Aussie investors – What is happening in local and global investment markets and Why.

Ashley Owen Apr 01, 2024
International sharesAsset classes, asset class returns
US Shares: 'double-whammy' of over-pricing, but how serious is it?

The US share market is soaring, but bullish profit forecasts, plus bullish multiples give us a 'double-whammy' of over-pricing. Current p/e ratios - expensive but extreme yet? Profit outlooks - also bullish, but how stretched are they? Why short and long term interest rates are both relatively low given the inflation task Why pricing is different from timing or triggers

Ashley Owen Mar 27, 2024
International sharesAustralian shares Asset classes, asset class returnsAustralian economy
Feb 2024 Snapshot - early rate cut hopes dashed but shares surge on confidence from US profits

He's my quick wrap-up of key developments in investment markets in Feb 2024.

Ashley Owen Mar 03, 2024
International sharesAustralian shares Asset classes, asset class returns
Share Market Pricing per Country - how do we rate?

The US dominates world markets and is the sole reason why the global share market as a whole appears very expensive. On the other hand, Australia appears much better value – but is it?

Ashley Owen Jan 22, 2024
Stock market crashesWars & military conflictsInvestment bubbles/busts, cyclesInternational sharesAustralian shares Asset classes, asset class returnsRecessionsRetirement planning
124 Reasons NOT to invest! - This time is different - or is it?

Every year there are ‘End of the world’, or ‘End of life as we know it’ crises and threats that scare investors into waiting and watching from the sidelines, but share markets have always seemed to power through them. Are the current batch of threats and fears different this time?

Ashley Owen Jan 17, 2024
Australian shares Asset classes, asset class returns
Australian Share Market Annual Returns Pyramid

2023 was a good year for the Australian share market, but where does it sit in historical terms? The past five years were actually rather boring and ho-hum for the share market – despite a host of extreme events like the Covid lockdowns, steep recessions, inflation spikes, aggressive rate hikes, wars, rising military tensions, bank collapses, etc.

Ashley Owen Jan 12, 2024 2
Asset classes, asset class returnsAsset allocation, portfolio construction
Patient Passive investors defy Panicking Professionals – again!

Patient Passive investors defy Panicking Professionals – again! In 2023, almost all asset classes posted positive returns, most were above average, and most beat inflation, despite doom & gloom from the so-called ‘experts’.  Here is the Good, the Bad, and the Ugly asset classes for 2023.

Ashley Owen Jan 09, 2024
Asset classes, asset class returnsAustralian economyAustralian shares
Australian share market has gone nowhere for 16 years? Is it ‘broken’? Has it lost its mojo?

The All Ordinaries index hit a peaked of 6,853 on 1 November 2007, but it is barely above that 16 years later. Why? Is the local share market in terminal decline? Has it lost its mojo? Is it ever going to get back to growth? Is it time to give up on the local share market and look elsewhere?

Ashley Owen Nov 10, 2023
Asset classes, asset class returnsAustralian economyAustralian shares
Market Monitor - October 2023 wrap-up: Central banks not done yet with rate hikes

Welcome to the Monthly Market Monitor for October 2023. First, here is our quick snapshot of Australian and US share markets, short- and long-term interest rates, inflation, and the AUD since the start of 2020

Ashley Owen Nov 02, 2023
InflationAsset allocation, portfolio constructionAsset classes, asset class returns
Three quarter time score check: 2023 a low-scoring year, but most asset classes are positive

Three quarter time score check: 2023 a low-scoring year, but most asset classes are positive and ahead of inflation.

Ashley Owen Oct 20, 2023
Asset classes, asset class returnsAsset allocation, portfolio construction
Aussie retirement funds have highest ‘growth/defensive’ asset mix in the world. Is this higher risk?

What is the best or ideal asset allocation for long term investment funds, including retirement/pension funds?

Ashley Owen Sep 08, 2023

‘For many years, Ashley has been my go-to source of information and analysis on what’s going on in financial markets and why.’

“Ashley has an encyclopaedic knowledge of the markets – I call him Mr Google!”

Noel Whittaker, AM – Australia’s best-known personal finance writer, columnist, and media commentator for the past three decades. He has written more than 20 books on personal finance, his columns appear in almost every major Australian newspaper, and he appears regularly on radio and TV as an expert on finance and investing. Noel Whittaker AM

“Over the past 20 years, Ashley has been an invaluable assistance to me, as a reliable source of unbelievably strong and interesting data, and many good investment ideas.”

"The depth and quality of Ashley’s research and analysis of investment markets is the best in the business.”

Dr Don Stammer - Australia’s most respected economic writer, commentator, and speaker for the past 40 years, with a distinguished career including the Reserve Bank of Australia, Chief Economist at Deutsche Bank Australia for 21 years, chair of nine ASX companies, plus numerous non-listed and not-for-profit boards. Read more

“What sets Ashley Owen’s analysis apart from investment banks and the financial press is his deep fact-based understanding of long-term financial data, rather than getting caught up on the daily noise over issues that may generate trades or sell newspapers today, but will be irrelevant and misleading two years from now.” 

Hugh Dive, CFA. Chief Investment Officer, Atlas Funds Management, and frequent expert commentator quoted in the AFR.

 

“Ashley’s unique fact-based analyses and insights into Australian and global markets are always worth reading. He has an incredibly deep and comprehensive store of financial markets data.”

Chris Cuffe, AO – One of Australia’s best known and most experienced investment managers – former CEO of industry giants Colonial First State, then Challenger Financial; founder and Chair of Australian Philanthropic Services, and Third Link Growth Fund; current/former chair, director and/or investment committee member of numerous funds including UniSuper, Argo Investments, Hearts and Minds Investments, Paul Ramsay Foundation, and many others. Read more.

 

Ashley is one of the best writers and thinkers on financial markets in Australia. His unique analysis and research is always fact-based and insightful, not the usual uninformed market noise and waffle that infects the mainstream financial media.

Graham Hand - Editorial Director of Morningstar Australia, including Founder/Managing Editor of FirstLinks, Australia’s leading newsletter and publishing service on wealth management, superannuation, and personal finance.

 

 

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The information contained in this document relates to historical, factual events and returns, and contains general commentary and observations about financial markets, asset classes, and asset allocation. This document, or any part thereof, does not, and is not intended to, constitute investment advice, or financial advice, or financial product advice, in any jurisdiction in which it is published, re-published or read. It does not recommend, encourage, or influence readers to buy, hold, sell, or deal in any financial product or security. Where securities of financial products are mentioned, it is purely for the purposes of illustration, context, and/or education, and not intended to influence anyone to buy, hold, sell, or deal in it. The information is current when written. All reasonable measures are taken to ensure its accuracy at the time of publication, but the author accepts no responsibility or liability for any errors or omissions. This document is only provided to, and intended for, holders of Australian Financial Services Licences. It should not be used or relied upon by any person or entity other than a duly licenced AFSL holder, or authorised representative thereof. The author receives no benefit, financial or otherwise, from any product provider, or product issuer, or any other firm involved directly or indirectly in the provision or services in or to financial markets or industries, whether mentioned in the report or not. Any opinions expressed by the author are his alone, and are intended for the purposes of education.