The link below will take you to a video of Hamish who I respect as one of the most knowledgeable and successful global minds in the industry.
Hamish works with Magellan Funds Management which has $100 billion of client monies under their stewardship. Chapter one and two are a great take on the current situation in respect to knowing what you don't know. Chapter three is not essential viewing as it is about Magellan's portfolio but is still interesting.
It is possible that the share markets will continue to recover on optimism as well as through the flow of bond investments being moved into share based investments irrespective of company earnings and economic outcomes. Cash and Bond returns are expected to be at record lows for the next decade. There are an unlimited range of possibilities and no guarantees. The only likelihood is that share market volatility is here to stay for some time. Our view is to gradually enter share markets with caution rather than have an all in, boots 'n all approach to risk based investments, and gradually reduce cash and fixed interest exposure when appropriate.
Australia is one of the few countries in the world at present that is still taking the threat of Covid-19 seriously. Our federal and state leaders are putting our health ahead of the economy which is why our road to recovery may be longer than most (see below). Only time will tell us with the benefit of hindsight whether these difficult decisions led us on the right path. I personally will forgo my quality of life for a brief time, rather than risk the lives of our elderly who made this beautiful and lucky country what it is today. It's a small sacrifice.
Our thoughts go out to all those in Victoria going through a terrible time.
Please stay safe and warm.
Disclaimer:This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this presentation, you should assess your own circumstances and/or seek advice from a Financial Planner and/or Registered Taxation Agent.
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