February 12, 2018, Robin Bowerman, Vanguard Investments Australia
The long-term outlook for a more challenging investment market with low-interest, subdued equity returns and higher volatility has led to some investors wondering whether a radically new investment strategy is warranted.
However, Vanguard's latest economic and investment outlook for 2018 and beyond suggests that disciplined, diversified and patient investors who concentrate on factors within their control are likely to be rewarded over the long term.
February 12, 2018, Robin Bowerman, Vanguard Investments Australia
A fundamental personal finance trap is to assume that your super fund's default insurance cover is adequate for your circumstances. Chances are it isn't.
The latest Underinsurance Australia report, recently released by independent consultants and actuaries Rice Warner, makes the point that most super funds aim to provide for part of their members' insurance needs through their default cover.
January 28, 2018, Robin Bowerman, Vanguard Investments Australia
The financial markets' low volatility underscores investors' conviction that the long-term global economic trends of modest growth and tepid inflation will also define shorter-term cycles. But risks lie in mistaking the trend for the cycle.
The most pronounced risk in our 2018 outlook is that already tight global labor markets will grow tighter, finally leading to a cyclical uptick in inflation. A wage or inflation spike in 2018 could lead markets to anticipate a more aggressive normalization from historically low interest rates just as central banks are either normalizing monetary policy or contemplating doing so, thereby producing a market-rattling shock.
January 28, 2018, Robin Bowerman, Vanguard Investments Australia
Stop procrastinating. These two words can provide an excellent starting point for investors who are determined to set meaningful resolutions and strategies for 2018 and beyond.
Behavioural economists have long warned that the common traits of procrastination and inertia can be highly detrimental to investors.
January 10, 2018, Robin Bowerman, Vanguard Investments Australia
A recent Vanguard research paper describes index investing – through conventional index funds or exchange traded funds (ETFs) tracking chosen indices – as a "valuable starting point for all investors".
By using indexing as their starting point, many investors then decide to index their entire diversified portfolios. This is understandable given that research repeatedly shows that the median active manager underperforms after costs and that future outperformers are difficult to identify.