Why returns are likely to be solid in 2017-18

Please click the link below to view Shane Oliver's views on investment markets for 2017-18.

Key points raised are :

  • Despite a lengthy list of worries including Brexit, Trump and messy Australian growth, the past financial year saw strong returns for diversified investors as shares recovered from a rough time in 2015-16.
  • Key lessons for investors from the last financial year include;
    • turn down the noise around financial markets
    • maintain a well diversified portfolio
    • be cautious of the crowd
    • and cash continues to be a poor generator of returns
  • Returns are likely to slow down this financial year but remain solid.  Global growth is good, this should underpin profit growth, there are minimal signs of broad based economic excess that point to a peak in the global growth cycle. Global monetary policy is likely to remain relatively easy despite a gradual tightening and share valuations are not excessive.