A conundrum for the conservative investor

Cash is facedown and bonds are off balance — what good are these duds as diversifiers?

Summary: Conservative investors are currently facing disappointing returns from traditionally defensive investments like cash and bonds - it's important to keep in mind returns are affected by broader macro conditions. Meanwhile, in 2015 a Morningstar investment conference saw 90% of attendees tip global and Australian equities as the top performers for the coming year - while fixed income and cash actually delivered top returns. However, standard definitions of growth and defensive investments are now harder to pin down - one option would be to track the progress of an international ETF.

Key take out: Professionals are finding it increasingly difficult to predict returns across asset classes - don't worry if you're finding it puzzling. 

Key beneficiaries: General investors.  Category: Shares.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles