Source: Credit Suisse Global Investment Returns Yearbook 2010 The above chart shows the gross outperformance of Australian shares (including dividends) versus Australian Bonds and Bills. Over the 110 years to the end of 2009, shares provided an additional return of only 6% to 6.8% versus bonds and bills respectively. Believe it or not, there is …
Daily Archive: June 22, 2010
Jun 22
Financial Crises for Dummies
Just found a great little article on the basic characteristics of financial crises by Rick Bookstaber…click here. It all seems so simple…before a crisis, Bookstaber says, “Equities are rising Volatility is low Credit spreads are narrow Correlations are low The opportunities are in the hinterland of low liquidity The yield curve is steep” Its all …
Jun 22
A look at risks in pension portfolios
I know I haven’t been posting too much lately and I know with this post I am just repeating myself. My latest article for IFA magazine was published this week and for those who don’t subscribe and are interested in reading it…it can be found here. More posts with some interesting analysis to follow! …