Nigel Baker from Arch Capital talks about market returns for 2019 and what to think about for 2020.

Welcome back to our short videos for  2020.

This time last year the news was all doom and gloom, with many experts predicting tough market conditions for 2019.

The start of 2020 has been tough here in Australia, and our thoughts and support are here for all affected by the bush fires and now possible floods.

The news is all doom and gloom again.

Has there ever been a year when the news starts with – “This will be the best year ever !”  ??
 

So, looking back at 2019, International Shares ended up having one of the best years in recent times, as did Australian Shares, bonds, and property.
In fact the forecasters only really came close with the expected cash rate ! ( and many  still  got that wrong). 

So looking ahead to 2020… should we act on the same forecasts again? Will the corona virus lead to a market fall..?
Well it is just February and really no one knows …

What I can say is that changing course based on  short term news is not recommended or sensible. 

Two big trends that are happening are;

 – A big move away from traditional ‘ active  /high cost ”  funds to lower cost funds. Here is a quick link to an article in The Financial Times. 
https://www.ft.com/content/f08e4c94-20a1-3748-a4f1-4efbb2d41d29
( if the link asks for a subscription to The  FT site , we can email you a  copy of the article)

The Australian market is following this global trend. The evidence is simply too compelling.

 – Sustainable Investing
We are already using sustainable funds in global equities and can now implement across all asset classes.
We have a great resource  we can share titled ” The Evolution of Sustainable Investing”  – if you would like a copy simply reply  and we will email  a copy to you. 

At Arch Capital we don’t rely on guesses or random forecasts ,  and we also don’t make investment decisions  based on our emotions. That would not be great governance.

We make sure that you have a sensible , well structured portfolio using the leading thoughts from finance to guide decisions, rather than guesswork.

I hope you enjoy this quick video update.

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