The rise in bond rates in the US in 2018 has tilted investment opportunities away from the easy choice of collecting higher dividends on shares, and now, greater prudence is required.
Tag Archives | defensive assets
Infrastructure assets usually benefit from long-term, stable and predictable cash flows, giving them defensive characteristics, with airports traditionally offering reliability even in difficult economic conditions.
Sticking to a long-term ‘set and forget’ asset allocation plan forgets those close to or in the retirement phase. Further, we are at a point where prospective returns in all markets are lower.
Continuing our look at ‘safe havens’, gold and bank deposits are often considered alternatives to ‘risky’ shares. How have they performed in times of stress, and do they rate as long-term investments at other times?
The value of the age pension as a life-long annuity should be taken into account when choosing the optimal asset allocation for retirement investments to avoid being overweight defensive assets.
Investment terms such as ‘defensive’, ‘growth’ and ‘risk’ are used heavily by professionals and retail investors alike, but these words can be misleading as they depend on the context and investors’ goals.