Brace for poor annual returns: Perennial
Brian Thomas
Perennial Investment Partners has warned investors against making hasty decisions with their shares, and urged Australians to brace themselves for poor annual returns on their portfolios and superannuation funds.
Perennial head of retail funds management Brian Thomas said: “Whilst we hear lots of talk about investors turning away from growth assets and investing in cash and term deposits, we think this is a real problem.
“Overseas studies have proven that retail investors tend to turn away from growth assets at precisely the wrong time,” he said.
According to Perennial, of the last nine recessions in the United States, the average recession lasted just over 10 months and the average period from the beginning of the recession to the low point in the US share market was four months. In other words, on average, share markets bottom six months before the end of the recession.
“Our investment boutiques are finding a number of great opportunities in this market, so investors who are looking at steering clear of shares should talk to their adviser. Whilst no one can predict the bottom of the market, it’s better to get set now to participate in the low PEs (price earnings) that can be accessed in today’s market around the world,” Thomas said.
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