26 Jul The good news in the plunge in markets
Key Points:
- The fall in bond and share values and rise in their investment yields on the back of higher inflation has seen our medium term (5 to 10 year) return projections for a diversified mix of assets rise to around 6.8% pa.
- If inflation falls back to around 2.5% pa this suggests reasonable average returns ahead. The main downside risk would be if inflation continues to trend up.
- The key is to have realistic return expectations and focus on assets with decent & sustainable income flows.
