Market Barometer
Look-forward with the latest outlook from our investment strategist
Been down so long it looks like up to me
Global and domestic sharemarkets have gained 50 percent and 30 plus percent respectively since early March*, business confidence is rising in and many other indicators are moving into positive territory.
Though it seems we’re through the worst, global economies will be nursing the side effects from the financial crisis for some time to come and the outlook remains unclear.
This quarter, as well as discussing the quarterly outlook, Russell’s investment strategist Andrew Pease provides recommendations for the major asset in terms of Russell’s new strategic tilting process.
What is strategic tilting?
Occasionally, investment markets can move to extremes of pessimism or optimism. The process of strategic tilting aims to take advantage of these market movements by temporarily adjusting or ‘tilting’ a portfolio’s exposure to a particular asset class from its long-term benchmark allocation.
Strategic tilting is based on the belief that markets are not fully efficient and may be occasionally mispriced. By tilting a portfolio toward an asset class that is undervalued, strategic tilting adds potential to enhance the long-term, risk-adjusted returns of portfolios.
We take a highly disciplined approach to strategic tilting, which builds on our core capabilities and heritage in constructing portfolios for our investors. There are a number of prevailing conditions required for success, and any implemented strategic tilt ideas are a result of our rigorous, research-based approach.
What is strategic tilting? (580kb)
*S&P/ASX 300 and MSCI World Index since March 9, 2009
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