Is the recent share market upheaval a warning for super funds?

During this robust and highly informative discussion Dixon Advisory Executive Chairman, Daryl Dixon and Chief Operating Officer, Funds Management, Tom Kline tell Nightlife’s Tony Delroy that the recent share market upheaval signals cautiouns.
 
“We’ve had three very good years and it looked like it was going to be good again this year but ... we’re bracing ourselves for returns in super funds to be lower,” says Daryl.
 
Join Daryl and Tom as they assess the gamut of investment concerns including:
  • Iron ore prices - “I don’t think its going to be a significant factor in how the economy does,” says Tom. “Mining is important but other parts of the economy need to step up if we’re going to get growth going forward.”
  • Shares – “You don’t want to invest in the share market unless you can absorb some risk,” says Daryl. “The people who lost in the GFC had speculative investments or highly geared companies.”
  • The AU$ - “...is still fundamentally overvalued,” says Tom. “As other currencies try to devalue it will make it hard for the Aussie to fall in the short term.”
  • Property -  The market is being flooded by properties and the yields are now so low that the real risk is an interest rates rise or the government doing something about negative gearing,” says Daryl.
  • Medibank Private float – “People may view it as a Telstra but my view is it’s not because Telstra had a high cash flow and good capacity to pay dividends,” says Daryl.

The interview starts at 6 minutes into the audio and runs for 35 minutes.

Listen to this live interview plus questions from callers on ABC Nightlife on 21 October 2014.

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Daryl Dixon

Executive Chairman

Daryl Dixon is one of Australia’s foremost investment experts and a well known writer and consultant. He has provided trusted advice to thousands of personal clients over more than 25 years and is an acknowledged expert in the areas of tax, superannuation (including public sector superannuation), social security and investments.

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