The elephant in the room of retirement planning

--  |   29/11/2018 Text size  Decrease  Increase   |  
email_fwd
<p><strong>Christine Benz</strong>: Hi, I'm Christine Benz from Morningstar.com. Healthcare costs are one of the biggest line items in most retiree budgets. Joining me to discuss some new Vanguard research on the topic is Jean Young, she's a senior research associate with the Vanguard Center for Investor Research.</p> <p>Jean, thank you so much for being here.</p> <p><strong>Jean Young</strong>: Thank you for having me.</p> <p><strong>Benz</strong>: Jean, let's talk about healthcare expenses in retirement, generally speaking. What are the big out-of-pocket costs that tend to occur in retirement?</p> <p><strong>Young</strong>: I think the biggest cost retirees are going to face is the cost of their insurance premiums. They need to make a choice around supplemental insurance. But that&rsquo;s probably the number one line item that people have to be prepared for. As we think about it--and this was a collaboration across divisions at Vanguard, we had folks from our advisory services group; we had folks from our investment strategy and our enterprise advice group as we started to think about this--and we actually did something that is unique for us a little bit. We decided to partner with Mercer, because while we are investment experts and planning experts and retirement experts, healthcare experts we could become. But we felt it would be better to partner with healthcare experts. So, our co-authors on this paper are two healthcare actuaries from Mercer.</p> <p>When we went into this we were very interested in the idea that there are all these big scary numbers out there. We don't think they are helpful. We went away from big scary numbers around saving for retirement. People think in terms of annual costs. Big scary numbers are actually behaviorally distracting and not actionable. Our view is you should think about your regular healthcare as an annual expense and we're all--you and I both-ave health care expenses today. As we think about it, we need to think about how much will that expense grow at retirement, and then of course you do need to think about how much it will grow over time. Because healthcare in the U.S, the costs for healthcare have been rising faster than inflation for a while. The trend is projected to continue. The number one expense people will face, most people will face, all people will face will be their insurance premium.</p> <p><strong>Benz</strong>: And one point your colleague Maria Bruno has made that I think is an important one is that if you are having your healthcare expenses deducted from your paycheck, they feel a little bit invisible to you. So, you might have the sense &hellip;</p> <p><strong>Young</strong>: Just like the 401(k) savings.</p> <p><strong>Benz</strong>: Right. So, they are not brand new costs that we all encounter in terms of health insurance and retirement. We just may have been paying them a little more painlessly while we were employed.</p> <p><strong>Young</strong>: Many of us, I know I'm fortunate this way, our healthcare costs while we are working are heavily subsidized. None of us like to see our own premiums go up when we are in open enrollment and we got to make a choice. But most workers, many workers have heavily subsidized premiums. When you think about that cost, you have to think about two things. First of all if you have subsidized premiums you might face a bigger incremental costs. You certainly want to understand that before you get there. The other thing is if you retire before you are Medicare-eligible you have different cost to consider. Now among large employers about 40% still offer some form of retiree medical, but even if you have retiree medical benefit and you have a generous subsidy, you are still facing an increase in that insurance costs most likely.</p> <p><strong>Benz</strong>: Your thought is--and one of the conclusions from the research is--take it year by year rather than being overwhelmed by that single total in-retirement number.</p> <p><strong>Young</strong>: Nobody says you need $600,000 for basic living, food and utilities. We take that year by year.</p> <p><strong>Benz</strong>: And then another point is customize it based on what you have going on. The base case you used is that the median healthcare outlay for a 65-year-old woman would be $5,200, but those costs really ran the gamut from like $3,000 at the low end to over $26,000. If I am thinking through, if I am approaching retirement and thinking through what will my healthcare costs look like, obviously I want to take into account my own health needs and the expenditures that I am having already.</p> <p><strong>Young</strong>: Your health status. It was interesting, as we went through this work with Mercer, Mercer built the model; we had a lot of input into it. When they turned over the model the first time it's this big new shining toy, what's the first thing you do? You run yourself through it. I am healthy. I just had my annual physical and my biometrics; I am healthy. And when I go through the model I come up healthy. But my parents, particularly my father, has a number of these conditions that when factored in move me from low risk to medium risk. We really spent a lot of time talking about that, because your genetic history, your parental history in particular is a predictor of what your health might be as you age.</p> <p>Now the good news is as we explored that. The difference between low risk and medium risk, it was $1,000 maybe on the number. It wasn't a big factor. Where the costs get really high is if you are not healthy. If you are high risk. If you have these chronic conditions, if you are overweight, if you are a smoker--that puts you in that high risk pool. It's that old 80-20 rule: 20% of the folks cost 80% of the costs. Your health, and the thing about this is, as you approach retirement, these chronic conditions, for many people they do manifest in your 50s and 60s. You actually know if you are facing a medium or a low risk health spend or if you are facing a higher health spend.</p> <p><strong>Benz</strong>: The elephant in the room here is you've talked about out-of-pocket, ongoing healthcare costs. How about long-term care costs? This is just such an important topic and one unfortunately where there aren't a lot of great answers. But let's talk about how pre-retirees can approach long-term care expenses, how much they should set aside. It's really a vexing issue.</p> <p><strong>Young</strong>: I think one of the contributions we're making here is we're providing people with a frame. We were talking before this interview about your personal situation around long-term care. I have personal situations around long-term care, and this is one of those topics as I am sharing our work across the country, everybody--this is personal. Everybody has a story. Some of the stories are heart-wrenching, but everyone has a story.</p> <p>I think what we do is we provide a frame. First of all half of folks will have zero paid long-term care expenses. That doesn't mean that they are not getting help from family and friends. But they are not paying for it. Another quarter will spend less than $100,000. We can all handle zero and most of the folks that we know and work with, $100,000 is a number that we can wrap our minds around.</p> <p>Now the problem is is the tail risk, the 15% of people--more likely to be women--who will spend over a $250,000. But that's 15% of people. It's really hard, we are not good at math. We're not good at putting things in perspective. These events we've all experienced around family members with long-term care are personal. They are emotional, and so we focus on those. But what we don't do well is put that in perspective to the number of folks we know that get to the end of their life never having used long-term care at all.</p> <p>In my own life my Grandmother Young, Lucille, she had dementia; her care was provided by my grandfather in the home. At the other extreme my Grandmother Baker, my mother's mother, she lived independently to 96. She fell, we don't know how she fell, because she lived independently. Hospital, hospice--it was very quick. That sounds like a horrible story, but Grandma Baker lived independent.</p> <p>Now it's a really hard thing to think about. Because as I think about this, am I Grandma Young needing two or three years of long-term care because of Alzheimer's. Or am I Grandma Baker living independent until I pass away in my late 90s. Its very hard to wrap your head around.</p> <p><strong>Benz</strong>: So how do you grapple with it?</p> <p><strong>Young</strong>: I think what we do, the paper came out in June, we've had the model for a while, and in our personal advisory services were starting to pilot this. So, we're testing and learning. We're testing and learning. But a big part of it is to help people understand the risk and talk through the sources of support that might be available and then help you make your personal decision around, how do you want to think about it. Your financial wealth at retirement has to cover a lot of things. One of which it could be long-term care.</p> <p><strong>Benz</strong>: Jean fascinating research. Thank you so much for being here to discuss it with us.</p> <p><strong>Young</strong>: Thank you.</p> <p><strong>Benz</strong>: Thanks for watching. I'm Christine Benz from Morningstar.com.</p>

Video Archive...

Spotting potential amid Brexit volatility
17/12/2018  Knowing which Brexit scenarios are priced into equity, fixed income and currency markets is key, says James Foot, who sees value in the pound, and potential in short-term volatility.
3 global stocks in power, EV and biotech
13/12/2018  A German utility, Japanese electric vehicle play and US biotech are singled out as three global stocks to watch by UK fund manager Killik & Co.
Beware the allure of geared funds
12/12/2018  Geared funds can offer spectacular returns compared to the sharemarket, but they can equally plunge when things sour, warns Morningstar's Alex Prineas.
Emerging Asia: Lower expectations, outsized opportunities
11/12/2018  Japanese financials and technology firms in Taiwan and Korea are among some of the most attractive opportunities on Morningstar Investment Management’s radar into 2019.
How to reduce risk in your portfolio
10/12/2018  Reducing risk in your investment portfolio doesn't have to mean de-railing your long-term plan, says Christine Benz.
Euro economies insulated from Italian drama
07/12/2018  Italy's government is shaking up local politics, but even their anti-EU policies aren't necessarily a harbinger of doom for investors.
Bank probe prompts board-exec relationship reset
06/12/2018  The banking royal commission has forced a shift in the way boards and company executives interact, which will affect the entire listed corporate sector, says Mornignstar's David Ellis.
3 top picks: Roads, power and education
05/12/2018  Large-cap companies Transurban, Navitas and Spark are highlighted by the head of Lazard’s defensive income strategy, Aaron Binsted.
Property crash, royal commission are key for income investors
04/12/2018  Australia’s residential property downturn and banking inquiry have influenced this income-focused strategy’s portfolio in 2018, as have commercial property valuations.
2019 will be a difficult year for the markets, says Psigma
03/12/2018  The upward rising markets of the past decade are over and investors should brace for a risky year ahead, says Psigma chief investment officer Tom Becket.
The elephant in the room of retirement planning
29/11/2018  Long-term care expenses in retirement are commonly overlooked, even among those who plan for the out-of-pocket ongoing costs, says Jean Young from Vanguard in the US. 
Where ETFs fit in 4 retirement stages
27/11/2018  Exchange-traded funds have pros and cons depending on your investment style and other variables as you approach retirement, along with applications in the accumulation and withdrawal phases, explains State Street's Jonathan Shead.
Some flawed thinking from emerging market investors
26/11/2018  The way many investors think about emerging markets is incorrect – they’re not uniformly volatile, and over-exposure to individual sectors and stocks can be problematic, says Morningstar Investment Management’s Nimalan Govender.
High risk, high return: scoping out small-caps
23/11/2018  More investors are looking to small caps for higher returns, in sectors such as healthcare, dairy and data storage, but there are risks, says Morningstar's Ross Macmillan. 
Coles priced to perfection following spin-off
22/11/2018  The IPO of Coles, as it split from Wesfarmers earlier this week, leaves the grocery giant close to its fair value and now directly comparable with competitor Woolworths, says Morningstar’s Johannes Faul.
Australian retirees lack confidence
21/11/2018  Superannuation complexities, investment risk and regulatory uncertainty mean a shortfall in confidence is understandable in our current environment, says State Street’s Jonathan Shead.
4 stocks Buffett bought
20/11/2018  Morningstar looks at which companies Berkshire Hathaway bought and sold during a surprising third-quarter 2018.
The art and science of valuing stocks
19/11/2018  Morningstar's Adam Fleck guides us through the process his team uses to build a forecast, discount future cash flows, and incorporate a company's moat into their analyses.
The double-edged sword of listed investments
16/11/2018  There are very good reasons for the popularity of listed investment vehicles, but some of these attributes also give rise to potential challenges, explains Morningstar’s Matthew Wilkinson.
Super policy shifts and the retirement roadmap
15/11/2018  Saving for retirement is well catered-for within existing superannuation provisions, but the transition to pension mode isn’t as developed, says Vanguard’s Robin Bowerman.
Where to now for big four banks?
14/11/2018  Morningstar's senior banks analyst David Ellis explains why he has cut his fair value estimates for the major Australian banks, even as they remain undervalued, and why Westpac navigated the royal commission “least-worst”.
Different viewing lens for consumers versus investors
13/11/2018  Changing tariffs and rising inflation in the US have different implications for individuals as investors and consumers, says Morningstar Investment Management’s Peter Bull, following on from his presentation at Morningstar Individual Investor Conference 2018.
Where Morningstar readers see investment opportunities: taking the pulse at MIICAU18
12/11/2018  Investors are bracing for more volatility, but attendees at the Morningstar Individual Investor Conference in Sydney see pockets of opportunity  in travel, mining and medical cannabis.
Consumption drives investment not the other way around
09/11/2018  As Australia’s equity market nears its peak and share buy-backs hit unsustainable levels, investors need to also be mindful of rising interest rates and government policy, says Morningstar's Peter Warnes.
Switching up your SMSF for income
08/11/2018  There are still considerable benefits when switching your SMSF to drawdown phase, despite the complexities and potential political changes ahead, says SMSF Association’s Peter Hogan. 
Trump, trade and volatility: taking the pulse at MIICAU18
06/11/2018  As the ASX hits its lowest levels in 12 months, reporter Emma Rapaport speaks to attendees at the Morningstar Individual Investor Conference in Sydney to get a sense of what's concerning them most.
Rising inflation hits both equities and bonds
05/11/2018  Rising rates in key global markets have boosted asset prices, magnifying the importance of good investment portfolio construction, says Janus Henderson’s Jay Sivapalan.
SMSF paperwork crucial to avoid legal problems
02/11/2018  Recent SMSF court cases in Queensland highlight the importance of keeping your documentation in line, says lawyer Shane Ellis.
Buying opportunities are out there
01/11/2018  Andrew Clifford, CEO of Platinum Asset Management, outlines where in the world and in which sectors and companies he sees investment value – even in a global environment many regard as late-cycle.
Market volatility can be an investor’s friend
31/10/2018  Market volatility effects various global sectors in different ways, and there is a crucial distinction investors must make between company cash flow and share price stability in this context, explains Magellan’s Vihari Ross.
Why Alphabet is now good value
30/10/2018  Google's parent company is an attractive option among global technology stocks, according to Morningstar US analyst Ali Mogharabi
What Amazon's latest result means for investors
29/10/2018  Mixed third-quarter results from Amazon don't detract from Morningstar's long-term positive assessment.
Too much trading in ETFs, says Bogle
24/10/2018  The Vanguard founder says although there are some good uses for ETFS, he still sees lots of bad and poorly used products in the market. 
The risks of timing factor investing
23/10/2018  Vanguard founder Jack Bogle sees a place for some factor funds but thinks trying to trade between factors is a losing proposition.
Bogle: optimum returns come from staying the course
22/10/2018  Jack Bogle says trying to time trades is a flawed decision, and investors should not try to beat the market.
How Amazon is delivering for the consumer
19/10/2018  Morningstar analyst Johannes Faul examines Amazon's edge on delivery and outlines how Myer has priced in some challenges to emerge as an undervalued retail play.  
Netflix keeps burning cash
18/10/2018  International subscribers boosted growth, but we still think the firm will have to spend heavily over time to fend off competition.
Bogle: Index funds should top investor lists
17/10/2018  Vanguard founder Jack Bogle explains the difference between long-term and speculative returns, and where he believes markets are headed over the next decade.
Finding value in troubled emerging markets
16/10/2018  Want to make money in emerging markets? Look for stocks that are uncorrelated to trade war fears and US central bank policy says T Rowe Price's Ernest Yeung.
Decoding the volatility in tech stocks
12/10/2018  Morningstar analyst Gareth James explains why tech stocks are prone to volatility, citing WiseTech Global as an example, and examines the strategy behind the recent takeover bids for accounting software play MYOB and education business Navitas. 
Fear not the red, play the long game
11/10/2018  The effects of the stock plunges in the US and Australia are scary but investors should avoid panicking and stay in it for the long haul, says regional director of equity research for Morningstar Australasia Adam Fleck.
Yield curve points to slowdown but no recession
11/10/2018  The shape of the yield curve indicates slower growth for late 2019, but we'd need to see a sharp deceleration in the US economy for it to enter into a recession in 2020, says Morningstar Australasia senior portfolio manager Brad Bugg.
Colchester's rigorous approach to bonds
11/10/2018  Colchester's silver-rated fund takes a rigorous approach to global government bonds and screens out any that aren't up to scratch, says Morningstar Australasia's associate director for fund research Tim Wong. 
Investors lose confidence as currencies slide
09/10/2018  State Street's Michele Hardeman tells Emma Wall how falling emerging market currencies have affected investor confidence.
Interim reports suggests corporate cops will get tougher
05/10/2018  Despite providing more questions than answers, the banking inquiry's interim report nevertheless suggests corporate regulators will be more aggressive in the future, says Morningstar analyst Chanaka Gunasekera.
Even I get scared in volatile markets, says Asia guru
04/10/2018  Concerns about a trade war are justified, but investors should stay the course or they risk missing the recovery, says Aberdeen Standard's veteran Asia-watcher Hugh Young.
Will You Hit Your Projected Retirement Date?
03/10/2018  Many factors can impact when you can retire, so targeting a specific date to stop working may not be an ideal strategy. 
A triple-hit for emerging markets in 2018
27/09/2018  Bonds in countries such as Turkey, Argentina and South Africa have been hit by a few fundamental factors, but the longer-term picture for the broader EM segment is more positive.
Seizing on a2 Milk's China formula
26/09/2018  Morningstar's regional director of equity research Adam Fleck explains the decision to start coverage of a2 Milk and how sales in China's infant formula market could boost growth. 
5 megatrends shaping the future of investing
25/09/2018  iShares' Rob Powell talks to Emma Wall about thematic investing and how megatrends are shaping global economies and stock markets.
Retirement income: expectations versus reality
24/09/2018  Schroders' global head of retirement discusses how investors approaching retirement can fill the retirement income gap, and why professional advice is so important.
3 Top Picks
20/09/2018  T. Rowe Price is excited by testing company ALS and its reinvestment in mining exploration, Star Entertainment's shrewd moves to get more traffic to the gaming floors and insurer IAG's premium rate increases across the board. 
Why tech, telco and mining are attractive
19/09/2018  T. Rowe Price's Australian equities team has bought into telecommunications for the first time in five years, and is more bullish than many on commodities.
Earnings season insights - Part 2
18/09/2018  CSL and Boral distinguished themselves in their respective sectors of healthcare and materials during fiscal 2018, while mining companies rightly returned cash to shareholders, says Peter Warnes.
A different path to property exposure
17/09/2018  This moated US-based commercial real estate data company should be on investors' watch-lists, says Morningstar's Michael Wong.
Earnings season insights part 1
14/09/2018  A 10 per cent increase in dividend growth was the highlight of a strong reporting season, which was dominated by robust gains in the resources sector, but stagnant wage growth and energy costs cloud the outlook, says Peter Warnes.
How retail stocks fared in FY18
13/09/2018  Australian consumer stocks Woolworths and Wesfarmers hold little "margin of safety" for investors as we head into fiscal 2019, explains Morningstar equity analyst, Johannes Faul.
ETF flows remain strong despite emerging market turmoil
12/09/2018  Currency volatility has rocked emerging market equity returns over the year, but ETF investors are staying the course, says Morningstar Asia director of ETF research Jackie Choy.
Trade worries shouldn't derail Alibaba
11/09/2018  We think the Chinese retail giant is one of the most undervalued consumer-focused stocks. 
A big week for Aussie banks
10/09/2018  As three of the big four increased mortgage rates, they fared surprisingly well in avoiding a prolonged public backlash, including Westpac, which is also subject to speculation of a wealth-division sell-off.
Are ETFs overrated?
06/09/2018  Liquidity, transparency, and tax efficiency are hallmarks of ETFs, but Ben Johnson says some of these benefits can be oversold.
Finding recession-proof companies
05/09/2018  Morningstar's Peter Bull likes companies with pricing power and niche products, and names that catch his eye include Microsoft, Colgate and luxury retailers like Louis Vuitton and Christian Dior.  
Balancing profitability and price
04/09/2018  Telecoms and financials are Australia's most attractive sectors in terms of valuation, but investors should be wary, says Morningstar Investment Management Australia's head of equities.
As bull market hits record, stocks slightly overvalued
03/09/2018  The technology sector looks the most pricey today while communications services appears to be the cheapest.
Is active or passive better in bond investing?
31/08/2018  Investors considering an active fixed income fund should be aware of their asset manager's risk levels versus skill and track record, according to a Morningstar US study.
Multi-asset strategy key in turbulent times
29/08/2018  In our global climate of geopolitical crises, trade disputes and general uncertainty, a multi-asset approach to emerging market investing can be useful, says Morningstar UK's Dan Kemp.
3 stocks that are well known but not overdone
28/08/2018  This European bank, UK oil major and established US software player still hold good investor value, says Franklin Templeton' s Peter Wilmshurst.
Interesting times for Aussie telco sector
27/08/2018  Morningstar's Brian Han explains why corporate player Vocus faces a hard road ahead, and what a potential TPG-Vodafone merger could mean for the sector.
Finding value in complicated times
23/08/2018  Geopolitical turmoil and other international market movers play a part in this team's value-selection process, explains Franklin Templeton's Peter Wlimshurst.
REA Group has growth potential
21/08/2018  REA Group posted $279.9m in net profits for fiscal 2018, up 23 per cent on 2017, with still further room for growth, says Morningstar's Gareth James.
Why Turkish lira decline may spell opportunity
20/08/2018  Investors shouldn't panic at the dire news headlines around Turkey's financial markets and falling currency, explains Karin Anderson from Morningstar US.
More volatility ahead for AMP
17/08/2018  Shareholders should expect more volatility ahead for embattled financial services group AMP, says Morningstar equities analyst  Chanaka Gunasekera.
Suncorp tipped to deliver strong dividend yield
16/08/2018  Suncorp remains attractive from an income perspective,  despite posting a 1.5 per cent drop in full-year profit, says Morningstar analyst David Ellis. 
CBA result messy but underlying profit still up
15/08/2018  Morningstar remains positive following Commonwealth Bank's full-year financial results, despite a terrible 12 months.
The importance of flexible retirement planning
14/08/2018  Building a contingency plan around when you intend to retire is better than setting a firm date ahead of time, according to a recent study from Morningstar's head of retirement research.
How political change can affect stock markets
09/08/2018  As Pakistan and Cambodia form new governments following their general elections, T Rowe Price's Eric Moffett examines how politics can affect profits in Asia.
3 small-cap top picks
09/08/2018  Fidelity's James Abela nominates these three smaller businesses from the healthcare, tourism and engineering sectors as companies of interest.
The Aussie fund with no banks or miners
07/08/2018  BlackRock's Australian concentrated industrials fund creator, Charlie Lanchester, explains his bold call to avoid holding banks and resource companies.
Rio result fails to live up to expectations
03/08/2018  Morningstar's resources equity analyst, Mat Hodge, explains the mining giant's latest result and the market's negative reaction.
Top themes on BlackRock's radar
02/08/2018  The prospects for Brand Australia in China are on the rise, says BlackRock's Charlie Lanchester, who has some hidden tech-stock gems in mind. 
What Nine-Fairfax deal means for shareholders
01/08/2018  Nine's Fairfax takeover would be a good deal for the newspaper group's shareholders, but there are still hurdles to overcome, says Morningstar's Brian Han.
A small-cap investing strategy with a difference
31/07/2018  Terms like nightclub, love jungle and no-man's land aren't usually associated with investing, but they're useful signifiers, according to Fidelity portfolio manager, James Abela.
Understanding managed fund income and capital gains
26/07/2018  Dividends remained quite stable, while realised capital gains fluctuated from year-to-year, according to a Morningstar study of 34 large-cap equity funds over 11 years.
3 sectors to watch
26/07/2018  Beyond FAANGs, this technology field holds opportunity, as do selective parts of the energy and mining sectors, says State Street's Olivia Engel.
Why you need a retirement policy statement
25/07/2018  A document detailing your retirement plans – both in the lead-up and once you begin drawing on your savings – is a great idea, according to Morningstar's US-based director of personal finance.
Wear your seatbelt as market volatility returns
24/07/2018  How company fundamentals rather than statistics underpin this team's process, and why the definition of defensive assets is changing, according to State Street's Olivia Engel.
VIDEO | 3 well-priced US income stocks
24/07/2018  Each of these consumer product companies hold wide-moats and good dividend yield prospects, according to Morningstar's US equities research.
Investor appeal of China increasing despite lower growth
20/07/2018  In a positive for global investors, China's slowing economic growth reflects a shift toward more sustainable expansion away from a debt-fuelled binge. 
How interest rates affect REITs and infrastructure assets
19/07/2018  Global property and infrastructure assets are expensive in the current environment but remain important as portfolio diversifiers, says Morningstar Investment Management's Bianca Rose.
Geopolitical clouds mar second half, says Dwyfor Evans
18/07/2018  The geopolitical news that has clouded the first half of 2018 is set to continue, says Dwyfor Evans of State Street.
3 global stock hits and a miss
17/07/2018  The founder and CIO of PM Capital names three US companies of interest, and one negative stock pick that may surprise investors.
Why news and politics are investor distractions
16/07/2018  Share investors shouldn't pay undue attention to news headlines and macro-political events, but retain focus on a five- to 10-year plan, says Paul Moore, founder and CIO, PM Capital.
Macro forecast 2018: Part 2
12/07/2018  Any disruption to China's consumption patterns would have significant consequences for Australia's exporters and our currency; while at home, out-of-cycle mortgage rate hikes look likely, says Peter Warnes.
Macro forecast 2018: Part 1
11/07/2018  Peter Warnes' annual macro forecast explores the unusual tensions between monetary and fiscal policy in the US, the effect of global inflation and interest rate movements, and the sustainability of economic growth.
Getting bang for your buck when equities struggle
10/07/2018  Particularly as equities look expensive, quantitative momentum investment can provide useful diversification for some investors, says PIMCO's head of quantitative strategies.
3 undervalued moated tech stocks from down under
09/07/2018  Why investors may want to consider these locally-founded enterprise and accounting software plays: pockets of opportunity among a largely overvalued pool of technology companies, according to Morningstar’s Gareth James.
2 global stock picks: insurance and telco
06/07/2018  Antipodes d eputy portfolio manager  Sunny Bangia shares his two global stock picks: a Chinese insurance giant and South Korea's largest telecommunications company.
Picking winners and losers via long-short investing
05/07/2018  There are richer investment opportunities available if investors also consider offshore companies and long-short positions via trusted funds, according to Antipodes' Sunny Bangia.
How China is opening its doors to global investors
05/07/2018  It is now easier than ever to invest in companies based in mainland China, and China is investing in global projects of its own.
Cash a safe haven in overvalued markets
04/07/2018  Cash may have a bad reputation as an asset class but as Morningstar Investment Management's Andrew Lill points out, when equities are overvalued it's a safe place to be while offering the liquidity to jump on opportunities when they emerge.