There are useful lessons from 30 years of performance of various asset classes, in this article by Sally Patton (Australian Financial Review, 2nd September 2017).
Grant Patterson, Managing Director of Providence is quoted within the article, sharing his views. “There is an argument that higher equity valuations are justified as a result of the much lower discount rate. However, given that bond yields are a function of economic growth and have been manipulated due to unconventional monetary policy, justifying higher valuations based purely on this is dangerous,” he says.
- Global growth remains buoyant despite pockets of uncertainty
- Valuations in some asset classes are very extended
- Australian economy is sending mixed messages; outlook uncertain
- Geopolitical concerns remain elevated
- Remain with elevated cash and well diversified
Click here to read the Global Outlook and Strategy 3rd Quarter 2017: Stem the Tide
Alternatively, you can view Grant Patterson, Managing Director, sharing the key messages of the Global Outlook and Strategy in the video below.