2020 turned out far better for diversified investors than had been feared when the pandemic hit, which triggered plunging market shares and deep recessions. The average balanced growth superannuation funds look like they have returned around 3%. This followed around 15% last year. Balanced growth funds returns have averaged about 7% per annum over the last five years, which is well above inflation and bank deposit returns.
The key points are:
2020 turned out far better for investors than was feared;
2021 is expected to provide solid returns and see a further rotation from pandemic winners to cyclical investments;
Watch: coronavirus and vaccines; US politics; China tensions; inflation; and the hit to immigration in Australia.
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