Ausbiz – Don’t put all your eggs into one basket

17 Nov 2020

Founder and Portfolio Manager at Cyan Investment Management, Dean Fergie, says the current heightened volatility in markets means now is the time to be diversified and not back a recovery story in one particular industry.

“At the moment we’ve got a little bit in tech, in these businesses that look really highly overvalued but are scalable and have got good growth,” he says. “We’ve also got quite a bit of money in stocks that offer traditional value. I think that with the RBA lowering interest rates to record lows… that the market is also going to gravitate towards income-based securities.”

Dean says those investors sitting on cash and waiting for a market pullback have missed the recent rallies and are missing out on income.

“As the market continues to run… this All Ords this month is up 10%, we’re seeing that people feel like they’ve just got to follow the crowd into the market. So I can kind of see that continuing, largely because… you put your money in a term deposit and get 0.5% [return] for a whole year.”


Website link here