The outlook for 2020 is pretty dire.
High ‘yield curves’ pointing to recession, overheated bond markets, and pricey tech stocks.
But these men, from some of Australia’s prominent financial companies, are pretty keen on one area: equities.
Ellerston Capital CIO Chris Hall, APN Property Group CEO Tim Slattery, FIIG Securities CIO Jonathan Sheridan and Betashares cofounder Ilan Israelstam were quizzed at the Allfin Investment conference about where they are putting their money in 2020.
All were cautious going into the new year, saying asset allocation is key and expecting subdued rates of return on both stocks and bonds after an excellent 18-month run.
Israelstam believes Australia is still in the throes of a late-stage bull market, and as such investors need to pick stocks with solid balance sheets and a proven ability to make money.
Here’s where they’re dropping their cash:
Chris Hall
50 per cent equities, moving to ‘beta’ markets in Asia which he expects to rally in the early months of 2020 and underweight the US.
25 per cent bonds.
10 per cent alternative investments, such as private equity and venture capital funds.
15 per cent in property, ex-housing.
Tim Slattery
50 per cent commercial property. He believes Melbourne property is likely to do very well in 2020, compared to property in Sydney.
50 per cent equities, split evenly between international and local markets.
Jonathan Sheridan
30-40 per cent equities.
40 per cent bonds, preferring a leveraged fixed income fund dealing in European futures.
The remainder is split between property and alternative investments.
Ilan Israelstam
65-70 per cent equities.
10 per cent property.
5 per cent alternative investments.
15 per cent bonds.