Investors can still add value to diversified portfolios

property/australian-equities/equity-markets/chief-executive/BT/interest-rates/

22 September 2008
| By Benjamin Levy |

Investors should be adding value to their diversified portfolios, with larger international companies, selected industrials, high quality credit markets, large Australian diversified miners, and emerging value in the financial sector to combat dips in credit and equity markets, according to the chief executive of BT Investment Management, Dirk Morris.

Morris noted that BT was “conservative” in its view of Australian equities and listed property and that Australians faced a difficult investment environment.

The closures of US investment banks Lehman Brothers and Merrill Lynch would prompt policy changes by US authorities, Morris said.

“We believe the US authorities are likely to respond in a way that prevents an economic meltdown and restores financial market confidence over timeÉ it is likely that further policy reactions will be more directed at ensuring financial and economic stability.

“The US Federal [Reserve] will now be inclined to reduce interest rates on signs of further economic weakness,” he added.

Lower oil and interest rates would prevent a sustained recession, while headline and core inflation will likely fall heading into 2009, Morris said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 1 week ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks 2 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

2 weeks 1 day ago

One licensee has lost 27 advisers in the past week, now sitting at zero, according to the latest Wealth Data figures....

3 weeks 2 days ago

TOP PERFORMING FUNDS