Please click on the link below to view Shane Oliver’s views on the outlook for medium term returns.
Key points raised are:
- Low and falling investment yields from most major asset classes point to a constrained medium term return outlook.
- For a diversified mix of assets this has now fallen to around 6.9% on our projections
- For investors the key is to
- have realistic return expectations
- allow that inflation is also low so real returns aren’t down as much
- focus on asset allocation
- focus on assets with decent and sustainable income
