Monthly Archives: February 2016

Is the Aussie stock market over-stretched to a point ?

The ASX200 Index is down 559 points, or 10.28% in two years.

The following is nothing new but impressively points out the obvious, especially for the many who believe hugging an index gives them exposure to a broader range of share investments.Scott Fleming

Of the downside losses in the last two years BHP accounts for a whopping 276 points; ANZ 78 pts; Woolworths 66, National Australia Bank 57; Rio Tinto 47; Fortescue 46; Woodside 33; Origin 32; Westpac 31 and Santos 28.

Those 10 stocks alone equate to 616 Index points lost.

Continue reading Is the Aussie stock market over-stretched to a point ?

Sometimes defence is the best form of offense

While it is crucial to maintain a diversified investment portfolio at all times, it is understandable that in the current market there has been a renewed interest in defensive assets.

Defensive assets generally act as a counter to market volatility by offering greater certainty compared to other investment options, although the trade-off may be lower returns and reduced flexibility.Glynn 3 - cropped2

The main type of defensive asset classes are cash (savings accounts and term deposits) and fixed interest investments such as bonds, and it is the latter category which is the focus of this blog. Continue reading Sometimes defence is the best form of offense