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Correlation

1-12 out of 24 results.

Negative correlations, positive allocations

A nascent theme today is that the inverse correlation between bonds and stocks has returned as inflation and economic growth moderate. This broadens the potential for risk-adjusted returns in multi-asset portfolios.

Stars align for fixed income

It isn't too late for investors to own bonds and take advantage of this early stage of the rate-cutting cycle. What's more, bonds are regaining their ability to be a genuine diversifier within portfolios.

An intriguing theory explaining persistent LIC discounts

The rise of trading discounts in closed-ended funds has challenged investors. This latest research suggests that funds that exhibit high volatility or beta tend to trade at larger discounts to their net tangible asset values. 

Why allocating more to fixed income now makes sense

High bond-equity correlation suggests increased overall portfolio risk, making greater fixed income allocations crucial for managing volatility. While bonds no longer diversify portfolios as much, elevated yields make them attractive. 

Why aren’t there more Warren Buffetts?

Warren Buffett is widely regarded as the most successful investor ever. Rather than keep his secret sauce hidden, he's shared his knowledge for decades, so why aren't more investors able to replicate his methods and success?

Do Government bonds still have a role to play for Australian investors?

Supposedly a defensive asset class, bonds have endured a horror four years. A massive boom preceded a massive bust, though the recent downdraft means future prospects appear brighter for high quality bonds.

The maths of friendship

Did you know you're far more likely to share genes with friends than non-friends? Or the number of friends you have is correlated to the size of certain parts of your brain? These are the latest findings of a famed psychologist.

The far-flung past as prologue

The negative stock/bond correlation from 1998 until 2019 was the anomaly, not the positive relationship that began in 2022. In the years ahead, portfolio diversification should come increasingly from security and manager selection.

Passive investing has risks too

Last year was rough for investors, especially where equity and bond portfolios were not as diversified as they thought. Spreading the risk sounds simple but watch that funds are not all doing the same thing.

Gold remains solid as Bitcoin melts

Claims that Bitcoin has characteristics of 'digital gold' by protecting against equity market falls in troubled times are not supported by recent price moves. Crypto relies on supporters pumping up speculative gains.

Gold and inflation: what does history tell us?

Multiple factors have seen gold fall in 2021, despite the rise in inflation. But given gold has performed strongly across longer periods of higher inflation, gold may benefit under the current inflation outlook.

Gold over the next decade as other assets lose their shine

While gold has been in a corrective pattern for the last year, a solid case can be made in the coming decade as investors with portfolios concentrated in equities and fixed income struggle for good returns.

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Getting rich vs staying rich

Strategies to get rich versus stay rich are markedly different. Here is a look at the five main ways to get rich, including through work, business, investing and luck, as well as those that preserve wealth.

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