There are many things that cause concern and elation in our various share markets around the world.   Elation when we have placed client money  and the markets go up!  Concern when the do the opposite or threaten to do the opposite.

Right now I feel that we are heading once again for some turbulence.  This is not a big deal for younger folk who have time to recover and who have the fortitude to keep adding more capital as the prices drop.   But for retirees, it is a different kettle of fish.

I am starting to tighten up the asset allocation to reduce exposure to the more exuberant managers of equities and seeking the conservative manager and those with higher returns than cash but much less risk.

Bond markets have had a bull run around the world…but with the threat of interest rate rises in the US and the knock-on effect of those on the world markets (bond and equities) we are getting concerned.

Our own local market has shown very strong growth and even with pull-backs recently, it is just into the expensive category in my opinion.  Our big 4 banks and other high dividend stocks have received huge amounts of attention from investors and I am now concerned that dividends cannot keep growing to justify the share price for a while.   Given the proportion of our market that is made up from these four companies and the likes of AMP and Telstra, the risks are getting to a higher than comfortable level.

So are there any investments out there which can cushion the downside risk and yet still deliver better than cash returns?   Yes…..ask me for advice and I will put recommendations into writing for you to implement yourself or we can do that for you under your signature.

Property is another bag all together and this is for another time.

Disclaimer : This is not advice.  It is general opinion and comment and does not take into account your personal circumstances.  Do not rely on this to make any financial decision.  For personal financial advice call Steve on 0419 552 673.