RBA favours ‘riskier’ investments?
In the wake of the RBA’s decision to leave interest rates unchanged it’s interesting to see some of the commentary on the attractiveness of fixed interest versus ‘riskier’ investments, including property and shares. RBA governor Glenn Stevens is reported to favour investors moving into these asset classes away from low-yielding term deposits.
We have recently been doing some interesting analysis to better understand the long-term value proposition currently offered by the Australian equity markets. We will share the results of the analysis here when completed, but the emerging view – for those with a long-term perspective – is that governor Stevens has a valid point.
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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