MLC Market Watch

While 2010 has started slowly for investors, one-year performance figures are continuing to impress. In this update, MLC’s Senior Investment Strategist John Owen looks at:

• the recent performance of the MLC Australian Share Strategy
• the outperformance of manager Sands Capital, and
• what it means for the MLC Balanced and Growth Funds

View the February MLC Fund Performance Update video here.

Download John Owen video script.

While the Australian economy is holding up relatively well in the midst of a global downturn, investors are still bearing the brunt of the worldwide market turmoil.

With predictions of a global recession stretching well into 2010, and an assumption that Australia will not be immune, does this mean investors can expect more pain? The answer, it seems, is maybe not.

The world is in one of the most serious economic and financial crises since the 1930s depression. Economies have rapidly contracted, the world’s financial system is in disarray and unemployment queues are lengthening.

In response, governments across the globe are undertaking massive programmes to avoid a repeat of anything like the Great Depression. We’ve seen trillion dollar stimulus packages, government guarantees of banking deposits and lowered interest rates amongst a whole host of other measures in an attempt to stimulate the economy.

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April’s Market Watch video series is now available.

View Investing in today’s market here. It contains the following videos:

- Brian Parker, an Investment Strategist at MLC, explains the latest economic developments and, in a separate video, provides his tips for comparing your fund in performance tables.

- Michelle Heinrich, Head of Investment Communications at MLC, looks at the benefits of staying invested in dividend paying shares and explains how, over the long term, this could be an effective way of growing and protecting your money.

Look out for next month’s video series which will include Brian’s update on economic developments at home and abroad, plus analysis on what this year’s Budget means for everyday Australians.

Stay tuned or why not subscribe to updates so you know when new videos are added to the site?

Please note the videos contain general information only. You should talk to your financial adviser to find out what’s most suitable for you.

If you do not have a financial adviser, call MLC on 132 652 and we’d be happy to put you in touch with one.

While periods such as these can be deeply concerning, the truth is they actually happen quite regularly.

With this in mind, MLC’s keynote magazine decided to speak to three people who have been through other market meltdowns throughout history.

In this extract, keynote speaks to MLC Senior Investment Specialist, John Owen, about his experience of the 1987 Black Tuesday Crash.

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Here are six tips on how to stay focused during turbulent times:

1. Diversification is king. Investors with a well-diversified investment strategy that has been formulated as part of a long-term financial plan should not be unduly concerned with the market’s recent moves. The aim of diversification is to build and protect your wealth by ensuring your investments don’t all move in the same direction at the same time.

2. Risk and return are related. The higher the expected level of return, the higher the risk (or volatility) you need to be willing to accept. Therefore it’s important you have a realistic expectation of what kind of returns are achievable and sustainable over the longer term given your appetite for risk.
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