| The case for equities is strong. Lessons from earnings season. Why investors are choosing diversified funds. | | View this email online |  |  | Welcome to this week's edition of Smart Investing.
For many investors the current interest rates payable on savings held in various types of bank accounts are attractive. But it's important to consider the risks associated with holding high amounts of cash, and where cash fits in with your overall investment strategy.
Our lead article by Alexis Gray, Vanguard's Senior Economist, Asia-Pacific, notes that while cash returns are strong at the moment, share markets are expected to continue to deliver significantly higher returns over the longer term.
Our second article this week reviews the recent Australian earnings season results, with prevailing economic conditions causing financial pain for many ASX-listed companies. In fact, only 40% of the companies that reported full-year results from the year to 30 June 2023 actually increased their profit over the previous corresponding period.
Tony Kaye, Vanguard's Senior Personal Finance Writer, says the wide variations in individual company results and dividend payouts underscores the importance of investment diversification.
Our third article focuses on why a growing number of Australian investors, either directly or through a financial adviser, are choosing diversified exchange traded funds (ETFs) and managed funds as a way of offsetting ongoing market volatility over the longer term.
| | | | | High deposit rates, but the case for equities is strong | | Investors can currently lock in attractive term deposit rates, however equities are still likely to outperform cash over the longer term. | | Read article | | | | | | | Investment lessons from the latest earnings season | | Tough economic conditions have impacted many ASX-listed companies. But there's an easy way to reduce exposure risk. | | Read article | | | | | | | Why more investors are choosing diversified funds | | A growing number of Australian investors are choosing diversified ETFs and managed funds. | | Read article | | | | | | | Why many retirees are underspending | | After accumulating superannuation savings over multiple decades, many retirees are fearful of spending too much. | | Read article | | | | | | | How exchange traded funds are valued | | We dispel some myths about ETF premiums and discounts, explain why they can occur, and suggest how investors can make informed decisions. | | Read article | | | | Vanguard and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.
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