Sharemarkets

Shock events like the Israel-Palestine and Russia-Ukraine conflicts are not a reason for investors to panic sell, as history tells us geopolitical risk, which is always present and therefore factored in by markets, has little correlation with long-term economic upheavals.

Investors and advisers have a tendency to extrapolate recent events into the future, and the last six months have shown how dangerous this can be. For those reviewing and building portfolios as the new financial year begins, five key issues should be front of mind.

Growth in superannuation drove Australia’s managed fund industry to near-record levels in the December 2022 quarter. While most asset classes delivered positive returns and Australian equities outperformed, investors are looking more to offshore assets for portfolio diversification.

The traditional 60/40 portfolio mix of shares and bonds may be due a shakeup in 2023, as market participants look to add fixed-income exposure to help offset a potentially weak year for equities.

ASX claws back, energy hit, IT takeover rally spreads The ASX 200 (ASX: XJO) spent most of the day clawing back from early losses, ultimately finishing down just 0.2% despite a weak lead from the US market. The story was similar to yesterday with 8 of the 11 sectors down but technology continuing to drive performance, up…

Markets drift lower, Rio’s dividend bonanza, inflation spikes The ASX 200 (ASX: XJO) weakened throughout the session, ultimately finishing 0.7% lower on Wednesday. Every sector fell apart from property, which added 0.9%, with the local tech sector once again the hardest hit, down 2.1% as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) continue to face global competition. Both Vicinity…

ASX finishes flat, materials gain again, Lynas delivers records The ASX 200 (ASX: XJO) gave up another record opening, dropping 0.4% throughout the day to finish flat. Every sector finished lower barring materials and mining, which jumped 1% on the back of a strong update from miner Lynas Rare Earths Ltd (ASX: LYC). Energy dropped 1.4% and property trusts…

ASX overcomes BNPL sell off, Afterpay tanks, Praemium jumps The ASX 200 (ASX: XJO) finished 0.3% higher on Wednesday, overcoming a significant sell off in the technology sector. The tech sector fell 2.7% for the day, with a 9.6% fall in Afterpay Ltd (ASX: APT) pulling the entire market down by 10 points. The sell-off came after a double…

ASX jumps on China stimulus, materials winning, API’s pay day The ASX 200 (ASX: XJO) started the week on a positive note, increasing 0.9% on Monday after a strong global lead over the weekend. The biggest contributor was an unexpected announcement from the People’s Bank of China around the loosening of monetary policy. The central bank reduced the amount…

ASX sinks, RBA’s taper tantrum, Lew hits Myer again The ASX 200 (ASX: XJO) closed around its lows on a busy Tuesday with the long-awaited monetary policy decision released at 2pm sending the market into negative territory. Every sector barring energy, which is benefitting from an OPEC impasse, finished lower with bond proxies including communications and healthcare…