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2019 saw growth slow, recession fears increase and the US trade wars ramp up, but solid investment returns as monetary policy eased, bond yields fell and demand for unlisted assets remained strong. 2020 is likely to see global growth pick up with monetary policy remaining easy. Expect the RBA to cut the cash rate to 0.25% and to undertake quantitative easing. Against this backdrop, share markets are likely to see reasonable but more constrained & volatile returns, and bond yields are likely to back up resulting in good but more modest returns from a diversified mix of assets. The main things to keep an eye on are: the trade wars; the US election; global growth; Chinese growth; and fiscal versus monetary stimulus in Australia.

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The investment world can change dramatically from one month to the next. But these secrets of successful investors never go out of style.

Social media could influence us to spend impulsively.

The past 10 years have seen pretty good returns for well diversified investors. The median balanced growth superannuation fund returned 7.3% pa over the five years to July and 8.2% pa over 10 years and that’s after fees and taxes.

Australian economic growth has slowed to the weakest since the GFC. Talk of recession remains all the rage. And economists don’t have a great track record in predicting recessions globally

Negative rates, QE & other measures the RBA may deploy – why? will it work? what would it mean for investors? Since the RBA started cutting interest rates again back in June and in the process taking them closer to zero there has been increasing debate that it will deploy so-called “unconventional monetary policy measures” such as negative interest rates and quantitative easing.

Worries about the US trade wars and global growth are continuing to cause volatility in investment markets.While the risks have increased, we remain of the view that recession is unlikely.Share markets may still fall further on trade war fears and this may even be necessary to remind both sides of the need for a deal. However, we regard the fall in share markets as another correction and not the start of a major bear market.