Market turmoil leave new investors in the lurch

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Inflationary pressures in the financial markets have created uncertain conditions for first-time investors.

Instability in the markets has pushed more Australians to try their hand at investing their nest egg on their own terms, with the number of self-managed super funds rising by 4.4 per cent to just over 600,000 in the June quarter, data from the Australian Taxation Office reveals.

“People are just wanting to take control of their super, particularly those in the 35 to 44 age bracket. They’re just not happy with their returns and they’re not as trusting of institutions anymore,” managing director of the SMSF arm of Prime Financial, Olivia Long, says. For new investors, who have to sift through unreliable information from a variety of sources, confusion only seems to be increasing as even financial experts are uncertain about whether or not Australia will head into a recession early next year.

He says Fidelity International is taking a barbell strategy to the portfolio. At one end of the barbell are commodities such as metals, mining and energy. At the other end of the barbell are companies that sell the essentials and have pricing power, such as consumer staples, healthcare, insurance and financials.

 

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