Risk sits at the forefront of every investor’s thinking right now. Investors don’t have the luxury of completely eliminating risk. They must take steps to prudently manage it so there are no rude surprises.
Things have moved exceptionally quickly. Before there was a chance to digest the first two rounds of stimulus, they have been have swamped by the third.
The news around COVID-19 continues to move fast. Governments are moving to alleviate the impact on individuals and businesses. Sunday’s stimulus had the following measures included.
Ask the average person and they’d probably assume a balanced portfolio was split half and half between growth and defensive assets. In the financial world, there’s a little more flexibility in the definition.
The ‘active versus passive’ debate in funds management is a guaranteed space filler in the financial media, but it would help the general public if those making the comparisons got their facts straight.
Take the default investment option at many of the industry super funds and when you hit a specific age (i.e. 50, 55, 60) your asset allocation will automatically become more conservative.
Remember their ‘compare the pair’ ads where industry super funds made a big fuss about fees? After ASIC's changes to fee disclosure, these industry super funds no longer look as competitive as they did on fees.
