16 Dec 2022
Global Industry Classification Standard (GICS): A dreadful year
- Posted by Dejan Pekic BCom DipFP CFP GAICD
GICS is made up of 11 listed market sectors and only one has made money this calendar year.
Why have asset prices fallen? Because interest rates have risen.
The risk free rate for which US 10 Year Treasury is a proxy has risen to 4.24% and this has negatively impacted 10 of the 11 listed market sectors.
You had to be in Energy to make money in 2022 and by Energy we just mean fossil fuels- oil, natural gas and coal.
Click for chart.
Oil, natural gas and coal are not the future of Energy supply and although it worked in 2022 we have significant doubt that fossil fuels are the right investment strategy over the next decade.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
6 Dec 2022
Efficient Market Hypothesis: Risk verses Return
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The Efficient Market Hypothesis (EMH) or Theory states that share prices reflect all information.
Meaning that listed companies are always trading at their fair market value in theory which is why index investing can work.
Using EMH, the attached is forecasting that the efficient market frontier is moving up and to the right in 2023 because of the fall in asset prices during 2022.
If the theory is correct, expect better returns but with more volatility in 2023.
Click for chart.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
1 Dec 2022
Client Talent: Gift Idea
- Posted by Dejan Pekic BCom DipFP CFP GAICD
This is exciting news.
Ms Alison Sweeney who together with her husband have been clients since 1992 has written a book titled… The Quiet Triumph of Rachel Farrowsworth.
A big congradultions to Alision and if you are looking for that Christmas gift, please feel free to enjoy.
Click for book.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
