ARTICLES

During the last 30-40 year investment period, investors have been spoilt by an unusually favourable period for investments and asset prices. Following the high inflation and low growth period of the 1970s – when stocks and bonds did very poorly – inflation pressures finally subsided as did high interest rates. Furthermore, we had a massive period of peaceful prosperity and globalisation, enabling lower prices and greater economic efficiency. This created excellent conditions for most asset classes to flourish and with it growth orientated static Strategic Asset Allocation (SAA) portfolios and low-cost index funds.

The idea that we should invest to meet our needs and goals is basic common sense. However, somewhat surprisingly, that is not what most players within the investment industry do.

The changed economic and investing conditions have provided cause for many advisers to re-examine their investment philosophy.

Advisers who follow Dynamic Asset will know that we readily share our thoughts on markets, the economy, portfolio management, and ways for advisers to get ahead.

The Future Fund and a swathe of leading global investors are now lining up to advocate a new approach to investing suited to the prevailing and prospective conditions.

2022 has been a challenging year for investors. After more than three decades of falling interest rates, lowering inflation, economic growth and geopolitical stability, everything has changed. The confluence of factors behind the change point to a sustained cyclical change not seen since the 1970s.

The latest US CPI and PPI have come below consensus expectations, precipitating an equity market recovery. Is this the opportunity of a lifetime and the start of a new bull market after months of bear market pain?

Successful financial advisers require a rare mix of technical and interpersonal skills. A significant part of the client experience is created by how you structure engagement to ensure a positive client journey. One that is empathetic, informative, understood, and pinpoint-focused on their unique circumstances.

All advisers know that difficult client conversations follow when market and economic conditions are most challenging. This article seeks to help advisers clarify their thought processes and approach to managing client decision-making in times of market turmoil. 

Financial advisers often use a form of segmentation to match a portfolio to their clients' investment needs. Commonly called 'bucketing', its purpose is to segment and simplify investment components. Advisers and clients are familiar with risk profiling buckets such as balanced, growth, conservative, or single asset-class buckets such as cash, shares, or property.