Oliver's Insights - Where to invest in a troubled world?
08 Sept 2010 - This note looks at opportunities for investors in a world of constrained returns and higher volatility in traditional global asset classes.
The key points are as follows:
- Although the risks have increased, we remain of the view that the US and global recovery will continue. However, whether there is a US double dip or not, it’s clear the growth outlook in the US and other major industrialised countries will remain fragile, constrained and volatile until the imbalances of high household gearing and public sector debt are worked off.
- However there are still opportunities for investors to make decent returns by focusing on high yield assets or assets which don’t suffer from growth constraints.
- Attractive assets on one or both of these grounds are Asian and emerging market shares, Australian shares, commercial property, infrastructure and corporate debt.
