Peter Rodgers

Blog

October 4, 2017

Investing: how to reduce concentration risk

Concentration risk. No, it’s nothing to do with thinking too hard about something. In fact, it’s more likely to be a result of not paying enough attention. Concentration risk is the increase in investment risk that comes about from not sufficiently diversifying your portfolio. In other words, too much money is concentrated in too few assets, sectors or geographical markets. This can happen: Intentionally, because you have a strong belief that a particular share or sector, such as resources, banks or property, is likely to outperform in the future. Unintentionally, through asset performance. One or two shares deliver spectacular gains, […]
August 16, 2017

Why currency matters to Aussie investors

There is nothing like an overseas holiday to remind you of the power of currency movements to either help or hinder your financial position. Australian investors probably have more at risk in the currency stakes than most other investors in developed markets. That flows from the small size of our local sharemarket – less than 3 per cent of the market capitalisation of global sharemarkets – which means to get international diversification Australian investors have to invest offshore. Contrast that to US investors where so many of their major companies are global players which means a lot international diversification comes […]
July 26, 2017

Don’t lose sleep over the uncontrollable

Tumultuous, volatile and uncertain. These are a few words (albeit extreme ones) an investor might choose to describe the first half of 2017. We’ve seen a political outsider sworn into the White House, central banks tentatively emerging from years of stimulus and low interest rates, tense elections in France and the UK, and a watching brief on China as its economic growth engine manages to keep ticking over. There has certainly been no shortage of news to keep investors awake at night, not to mention jumpy during the day. Even the experts–self-proclaimed and actual–struggle to agree on what is important. […]