Central banks can’t buy gold fast enough, while gold miners are recovering after a dramatic selloff and Bitcoin, the asset previously regarded as digital gold, is having a miserable year.
Ask most investors what determines their long-term returns and they’ll most likely talk about their asset allocation, the way they select their fund managers or their track records at getting macro calls right.
Central banks can’t buy gold fast enough, while gold miners are recovering after a dramatic selloff and Bitcoin, the asset previously regarded as digital gold, is having a miserable year.
Ask most investors what determines their long-term returns and they’ll most likely talk about their asset allocation, the way they select their fund managers or their track records at getting macro calls right.
So, your investment plan is ready and assumes you know how to find the best funds and ETFs to execute your plan. But with over 10,000 managed investment products that Australian investors can pick from, seeing the wood for the trees is easier said than done.
Once upon a time, income investors might simply have used a select group of dividend-paying equities and bonds to cover their needs. Today’s income portfolio looks vastly different – though equities and bonds still play a role.
Investors learnt the hard way long ago.
The theory behind diversification makes intuitive sense to most investors: by combining assets that don’t move in perfect synchrony, investors can reduce portfolio volatility without necessarily sacrificing expected returns. This accepted truth reshaped portfolio construction in the twentieth century and continues to underpin institutional allocation frameworks today.
Emerging markets (EMs) entered 2026 with strong structural momentum behind them, but the escalation of conflict in Iran has introduced a new layer of geopolitical risk that’s reshaping capital flows, commodity dynamics, and currency regimes.
Every technological revolution eventually runs into a physical constraint. For AI, it’s becoming clear that bandwidth and energy are the main barriers the technology needs to navigate. The enormous computing clusters used to train and run modern AI models now consume staggering amounts of electricity and generate unprecedented data traffic between chips, servers and data centres.
The ‘4% rule’ is one of the more widely quoted guidelines for investors approaching or during retirement. It was originally developed by financial planner William Bengen using historical market simulations which suggested retirees could withdraw 4% p.a. from their portfolios without exhausting their savings over a thirty-year retirement.
For the longest time global investment markets been defined by the implicit assumption that globalisation, relative geopolitical stability and expanding trade would continue indefinitely. However, that assumption is being tested.
Investors are generally taught to focus on average returns as a gauge of investment success. This makes intuitive sense to most. Over the long run, developed market equities have delivered average returns of around 10% p.a. That solid result has reinforced the advice: stay invested, reinvest your dividends and compounding will do the heavy lifting for you.
Most investors tend to think of systemic risk as something that arrives with a bang, like a banking crisis, a pandemic, or a war. Increasingly, the more realistic systemic dangers are slower to gauge and harder to price. They are an ominous set of interconnected and interacting stresses that have the potential to degrade the very conditions required for markets to compound at all.
One of the great emerging benefits of AI is that it allows self-directed investors to take better control of their financial destinies. With its fast-improving capabilities, valuable financial advice may be available at your fingertips. Or so the theory goes.
Passive investing has reshaped global equity markets over the past decade. Record inflows into low-cost ETFs have led many investors to question whether active management still has a meaningful role.
There’s a uniquely Australian breed of wealth creator who achieved financial independence before the age of 30 by accumulating a sprawling property portfolio.