Australian Investors Podcast Forget about VAS and just buy VHY? Plus, Rio Tinto (RIO), Guzmen (GYG) or Charter Hall (CLW)?
Oct 11, 2024
Explore the debate between investing in Rio Tinto, Guzmen Y Gomez, or Charter Hall for the long haul. Discover strategies for recovering from significant losses and insights on potential interest rate cuts by 2025. Delve into high-yield ETFs and the implications of market volatility. Analyze standout investments and trends in Australian property securities, while learning about effective investment strategies and the importance of diversification. Engage with community insights and strategies for managing large funds conservatively.
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Unsustainable Returns
- Current market returns of ~20% are exceptional and unsustainable.
- Investors should focus on long-term average returns (8-10%) and rebalance portfolios accordingly.
Unpredictable Market
- The US stock market, particularly tech stocks (FAANG), has seen extraordinary growth in 2024, exceeding predictions.
- This underscores the difficulty of predicting market trends and highlights the volatility of the stock market.
Diversification Strategy
- Market-cap weighting and inclusion of large-cap stocks are crucial for driving returns in indexes like the NASDAQ 100.
- Diversification through mid-cap or small-cap ETFs can enhance portfolio resilience, especially in concentrated markets.