Shane Oliver believes that during the year to come Australia will likely avoid a recession (see, for example, Seven reasons why Australia should avoid a recession, 9 November). But it’s quite possible that it won’t: on 28 October in Shane Oliver’s guide to riding out a “year to … [Read more...] about How Low Could Stocks Go in 2023?
Recessions usually crush shares – but investors can always reduce their ravages
According to Ashley Owen (“Recessions Are Usually Good for Sharemarkets,” Firstlinks, 12 October), “history shows that economic contractions have been mostly good for share prices.” Specifically, “the Australian share market has actually increased during the majority of economic … [Read more...] about Recessions usually crush shares – but investors can always reduce their ravages
How the 60/40 portfolio outperforms
In Critics of the 60/40 portfolio have their blinkers on (27 September), David Thornton notes that “the age-old 60/40 portfolio,” comprised of 60% stocks and 40% bonds, “has copped a growing chorus of criticism lately.” On 15 October 2021, for example, Goldman Sachs asked: “is … [Read more...] about How the 60/40 portfolio outperforms
Why ESG is fatally flawed
“The value of assets managed with a responsible investing framework has risen to $A1.54 trillion, accounting for 43% of the total (Australian) market,” The Australian reported on 12 September. In a survey it released that day, the Responsible Investment Association Australasia … [Read more...] about Why ESG is fatally flawed
Why Jerome Powell’s speech shouldn’t have surprised you
Jerome Powell chairs the Board of Governors of the U.S. Federal Reserve. His speech at the Fed’s Jackson Hole Symposium disappointed and even shocked many people. It’s been widely cited as the cause of plunges of between 3% and 4% in American markets on that day, as well as falls … [Read more...] about Why Jerome Powell’s speech shouldn’t have surprised you