Invest
‘Don’t go for the safe havens’, investors warned
Investors have been warned by a global asset manager to avoid defensive assets in 2017 given their economic outlook.
‘Don’t go for the safe havens’, investors warned
Investors have been warned by a global asset manager to avoid defensive assets in 2017 given their economic outlook.
State Street Global Advisors (SSGA) chief investment officer Rick Lacaille says despite the company’s subdued economic forecast, there are opportunities for investors on the hunt for yield.
“With growth markets, we’re not expecting economic growth to be sparkling this year but there will be enough at the company level for selective investors to find growth within their portfolio,” Mr Lacaille told SSGA’s Global Market Outlook 2017
“Although we’re late in the credit cycle, we do think there are opportunities in credit and other asset classes to build yield.
“Don’t go for the safe havens. I think economic growth won’t be great this year but it’ll be enough.”
Instead of relying on a defensive strategy, Mr Lacaille urged investors to seek out growth opportunities while remaining aware that last year’s volatility will likely carry over to 2017.
“I think particularly avoid those negative yielding markets, which are pretty numerous around the world, will be an important thing for investors,” he said.
“2017 won’t be the same as 2016 but one thing that is for sure, that the micro structure of many markets like FX, fixed income and to a certain extent equities, have evolved to a state where news can cause much bigger shocks than it could have zero or 15 years ago.”
While US President Donald Trump’s economic policy will likely produce much of that market volatility, some winners are expected to emerge from it, according to SSGA chief economist Chris Probyn.
“One of the reasons why markets are run up is the prospect of deregulation, which saw financial stocks do particularly well post-Trump’s election,” Mr Probyn said.
Mr Trump’s promise to slash corporate tax rates in particular could see smaller US enterprises thrive under the new regime and promote inflation.
“Corporate taxes are the low-hanging fruit because everyone wants it cut it given it’s the third-highest corporate tax rate in the world which will benefit small and medium enterprises,” Mr Probyn said.
"This is the first time in recent years that I am having meetings with colleagues and we’re mentioning inflation,” he added.
Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more
Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more
Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more
Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more
Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more
Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more
Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more
Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more
Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more
Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more
Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more
Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more
Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more
Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more
Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more
Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
