We must tune clients in for a long-term low return world

Tim Farrelly  |  farrelly’s Investment Strategy  |  13 October 2021  |  0.25 CE

Australian cash rates will stay low until the mountain of home loan debt is repaid - and that will take decades. Low cash rates mean low bond rates. Low interest rates mean high asset prices, which means much lower returns lie ahead for all asset classes. Low future returns have many implications - not the least of which are finology-related. Should we warn our investor clients of what lies ahead? How do we keep them engaged? How do we keep them from chasing rainbows? Our communications strategy must be in tune with this new environment.


Not yet a Member? It’s quick and free to join. Already a member? Please log in.

What's new with our live and on-demand continuing education, accreditation and certification programs.

Led by behavioural finance expert, Herman Brodie, the Behavioural Finance - Investment Decision-Making course will help you identify, analyse and evaluate the principal human preferences that influence decision-making in situations of uncertainty, so you can recognise and identify these preferences in others, to improve investment decision-making.