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9 May 2019

Market Metrics: Forecast

If we go back to basics, the number one factor in determining your future return is price.

No matter the quality of the asset, if you overpay on the purchase you will make little or no profit.

That is an absolute fact.

We have attached a portfolio managers (PM) view on the forward 3 year forecast for a number of financial assets.

Interestingly the PM see good returns on Australian listed companies and very poor returns from purchasing Australian listed property (A-REITs) at current prices.

The PM is also forecasting that US listed companies and Australian Government bonds are not going to make any money over the next 3 years.

Click for charts.

The problem with individual investors acting on such information is that we are talking about the future which is impossible to predict with absolute certainty.

This is why the key for investors is simply to remain invested according to your appetite for volatility, allow the professional PM’s to do their job and when fear and panic take hold during the next financial catastrophe, to take advantage by buying more quality assets at discounted prices.


WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances please do not hesitate to contact us directly.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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