Investment Update A year is a long time! - Presentation Header
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Investment Update
Presentation Header
A year is a long time!
March 2021
First, a note!...
Concepts discussed herein are of a general nature.
Presentation
You Header
should not act on the material provided without
obtaining advice specific to your own needs, objectives
and circumstances as you risk undertaking an investment
not appropriate to your needs.
We will cover… - Review of the last 12 months A pandemic…a market crash…an economic crash…huge government support…and a rally Presentation Header - Concerns and risks - Long Term return expectations - Opportunities
Firstly …a review of returns Feb 06, 2021 Index Name 1 Year 3 Years S&P/ASX 200 (TR) 0.90% 8.31% S&P/ASX 300 (TR) 1.34% 8.46% Presentation Header S&P/ASX 20 (TR) 1.74% 8.85% S&P/ASX 100 (TR) 0.41% 8.44% S&P/ASX 200 A-REIT (Sector) (TR) -12.60% 6.60% ALL ORDINARIES (TR) 3.38% 9.03% S&P/ASX SMALL ORDINARIES (TR) 8.91% 8.47% S&P/ASX MIDCAP 50 (TR) 14.88% 10.80% S&P/ASX 100 Utilities (Sector) (TR) -17.08% -1.59% S&P/ASX 100 Communication Serv. (Sector) (TR) 4.26% 6.89% S&P/ASX 100 Information Tech. (Sector) (TR) 59.20% 29.71% S&P/ASX 100 Materials (Sector) (TR) 18.32% 16.96% S&P/ASX 100 Industrials (Sector) (TR) -14.43% 5.15% S&P/ASX 100 Health Care (Sector) (TR) -8.13% 20.85% S&P/ASX 100 Energy (Sector) (TR) -22.03% -6.07% S&P/ASX 100 Consumer Staples (Sector) (TR) -1.22% 13.49% S&P/ASX 100 Consumer Discretionary (Sector) (TR) 15.27% 14.21%
Globally… Index Name 1 Year 3 Years S&P Europe LargeCap (EUR) TR -3.26% 4.85% Presentation Header S&P United Kingdom LargeCap (GBP) TR -14.62% -1.74% S&P Germany LargeMidCap (EUR) TR 4.06% 2.80% S&P Europe 350 Equal Weight Index (EUR) TR 2.61% 6.24% S&P Southern Europe BMI (EUR) TR -7.23% 0.09% S&P Japan 500 (TR) 15.15% 4.38% S&P 500 (TR) 18.70% 15.85%
2021…begins with New USA president and likely stimulus package of up to $1.9Trillion Covid vaccines rolled out globally Australian housing clearance rates picking up Presentation Header USA and China relations continue to be strained USA to develop their own supply lines in critical supplies (like rare earths) Global push for “climate change” as a focus of government policies The RBA is committed to buying $100B of Australian government bonds RBA also committed to keeping rates low for three years Continued economic support is likely – at least the first half of 2021
Sharp return of employment compared to a normal recession Presentation Header
Concerns and risks…
PresentationWeHeader
do the worrying for you…here’s what we
are looking at !
The USA market is expensive Presentation Header
Take out the big tech stocks and the USA returns are more modest Presentation Header
Non-profitable technology companies are up multiples in the last 12 months Presentation Header
Gamestop - $20 to $480 and back to $63…in 4 weeks Presentation Header
Could inflation return quicker than markets expect?
Big bounce already
Presentation HeaderFor US Investors, overseas assets now represent the best opportunities
The last ten
years have
been very
favourable to
USA
Presentation Header investments, we
don’t think this
will persist;
US institutions
feel the same
way!Some areas are very
Australian equities… expensive but the
Australian market
has lagged the SP500
over 10 years
Presentation Header
The Australian All
Ordinaries is barely
above the high it
made in 2007Emerging markets have also lagged but beginning to make new highs Presentation Header
And, we retain Gold exposure as insurance…
Gold is off its
highs but the
miners are
cheap by
Presentation Header historical
standards
and much
cheaper than
the marketFocus …
Consider your short- Diversify adequately,
Review your risk profile
term spending needs (12 relevant to your
and asset allocation
to 18 months) situation/needs
Presentation Header
Think of your portfolio
Ignore headlines/social
assets each having
Patience media – they won’t help
different risk profile and
you
time horizons
Raise any changes or
concerns with usIf you have any concerns or questions, please contact the
Headerteam to ensure your strategy is still
Preda Wealth
Presentation
appropriate.
We look forward to being of service.
Please contact Robert Negri at
robert@predawealth.com.au “If you know of anyone who could benefit from our
or by phone on 8663 5185 services, please do not hesitate to contact us”.You can also read
