Please click the link below to view Shane Oliver’s reflections on the GFC, the lessons learned and could it happen again.
Key points raised are:
- The key lessons from the GFC are that
- high returns come with higher risk
- while each boom bust cycle is different, markets are pushed to extremes of valuation and sentiment
- be sceptical of financial engineering or hard to understand products
- avoid too much gearing or gearing of the wrong sort
- monetary and fiscal policy work
- highlighted the importance of proper diversification and asset allocation
- another boom bust cycle is inevitable at some point but it will likely be very different to the GFC.
