All strategies work – until they don’t. While the hottest ticket in town is still private credit, is it everything it’s cracked up to be?
The introduction of the Your Future, Your Super performance test has led to many strange portfolio construction outcomes. They might get stranger yet.
Investors are sailing in uncharted waters, writes Michael Block, and the only way to navigate them is through a well-diversified portfolio. But is it possible to have too much of a good thing?
Those that have made high returns by overpaying for higher-risk/lower-quality credit have been lucky and credit conditions are unlikely to be so easy in the future, writes Michael Block. Now is the time to take a very thorough look at one’s credit exposures.
Genuine uncorrelated alpha is the holy grail of investments, writes Michael Block, but managers and strategies that can actually generate it are hard to find. So what’s a poor boy to do?
Basing an investment strategy on the goldilocks investment markets of the last 35 years gives rise to considerable risk, writes Michael Block, and now might be the time to get out of growth assets.
With prospective portfolio returns likely to be lower than they have been in the past, the incentive to reduce risk and enhance returns is greater than it has ever been. The investment maths is compelling, but regulatory risk might overpower it writes Michael Block.
Your Future Your Super is poorly implemented, draconian, stifles innovation and has proven to be a gigantic – and expensive – waste of time. Other than that it’s a really good idea, writes Michael Block.
