Recovery of Investment Markets

Dated: May 2004

The recent recovery in the various share markets around the world has put smiles around the world has put smiles back on the faces of many investors. It's hard to believe that only 12 months ago all the world's major share markets were in a prolonged slump and managed fund returns were suffering consequence.

Today things could not be more different. The Australian share market has recently reached a new record high, bond yields have steadied and property appears to be coping well with recent interest rate rises. Many share market funds have returned 20%+ over the last 12 months.

This recent run of strong investment performance is primarily due to a recovery in the world's leading economies and there is no doubt that markets around the world were oversold at this time last year. A year later, those investors who maintained a long-term outlook and retained their share investments (through some very tough times) are now reaping the benefits of their conviction.

"Whilst the outlook looks brighter investors should continue to adhere to their long-term plans and hold a well diversified portfolio of quality investments and seek expert advice before altering their investment strategy".