Are We In For Another Rollercoaster Ride?

December 11, 2010

 

Over the past decade investors have endured a number of ups and downs, with negative returns becoming common.  Starting with the falls in technology stocks, economic slowdowns and then sharp falls in global sharemarkets.  Almost the only period of some stability was towards the end of 2003 to 2007.
 
Local investors have seen Australian shares as the clear winner in terms of performance, outperforming global sharemarkets, cash and fixed interest over the past 10 years
So, what will be the investment trends over the coming decade?

Australia

If the Australian economy is well managed it is to expected to enjoy a period of above-average growth, both robust and resilient   Analysts are predicting that wealth per adult will continue to grow.  In 2010 the average wealth in Australia, at six times the world average, was the third highest in the world after Switzerland and Norway.  With just 0.4% of the world’s total population Australia accounts for 3.1% of the top 1% of global wealth.
The next decade should see a period of greater prosperity, even if the risk is greater volatility.
 

Globally

Emerging markets are playing a significant, and increasing role in the global economy which is set to continue.  According to estimates figures released by the International Monetary Fund, developing markets will account for 50% of the global economy by 2014.  This strong growth will continue to push demand for natural resources over the coming years.  So companies with world-class assets, a skilled labour force and good infrastructure (such as railways and ports) will be in a strong position to take advantage of this growth from emerging markets.
 
With an increasingly affluent population comes an increased demand for food, especially protein, so increasing global food production and improved quality of food will be on on-going challenge.
 
Visit Leenane Templeton Chartered Accountants & The Self Managed Super Fund Specialists at:
 
 
 
The Self Managed Super Specialists.    
Sydney  – Newcastle – Brisbane

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