Invest
How risky are equity markets at present?
Investors shouldn’t be feeling “overly anxious” about the market despite talk of property market bubbles and unexpected election results around the world, according to one boutique fund manager.
How risky are equity markets at present?
Investors shouldn’t be feeling “overly anxious” about the market despite talk of property market bubbles and unexpected election results around the world, according to one boutique fund manager.
Julian Beaumont, the investment director at fund management company BAEP, said the level of risk in the market is currently “overstated” and investors shouldn’t be alarmed by the various happenings in politics and the economy.
“The key thing for investors to keep in mind is that now isn’t the time to panic about things like whether the property market is likely to collapse, what the result of the UK election might mean or how the political situation in the US might play out,” he said.
Mr Beaumont stressed that the share market’s lack of alignment with the economic outlook, equally, shouldn’t be overly concerning to investors.
“This is not unusual, and indeed in recent years we have seen the economy – both globally and domestically – struggle, requiring government intervention in the form of quantitative easing; yet the share market has continued its solid rise,” he said.
This is not to say that the market is devoid of risk, Mr Beaumont said, but that it is possible to position your portfolio to avoid the potential negative impact these risks can pose.
“For example, it is the large cap companies on the ASX that are suffering the most at the moment, but outside the top 20 valuations are looking quite attractive,” he said.
“At BAEP we also currently favour healthcare and consumer stocks, which are presently good defensive stocks which are performing well; we also see good opportunities in Australian companies that are doing well internationally.”
RELATED ARTICLES
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
