1
00:00:05,920 --> 00:00:08,480
Michael Thompson: Welcome to Ask Fear and Greed. Will we answer questions

2
00:00:08,480 --> 00:00:12,880
Michael Thompson: about business, investing, economics, politics and more. I'm Michael Thompson

3
00:00:12,960 --> 00:00:16,600
Michael Thompson: and hello Sean Aylmer. Hello Michael, Sean got a good

4
00:00:16,640 --> 00:00:18,319
Michael Thompson: one for you today. They are all good questions, but

5
00:00:18,520 --> 00:00:23,200
Michael Thompson: I like this one talking about the share markets. Somewhat

6
00:00:23,280 --> 00:00:26,040
Michael Thompson: poor start to the yes and the fact that it

7
00:00:26,120 --> 00:00:28,200
Michael Thompson: hits pretty much all of us through our super right.

8
00:00:28,360 --> 00:00:29,880
Sean Aylmer: Okay, but.

9
00:00:31,320 --> 00:00:35,680
Michael Thompson: How hard does it hit us? What's the actual impact

10
00:00:36,000 --> 00:00:37,440
Michael Thompson: on our superannuation?

11
00:00:38,680 --> 00:00:44,160
Sean Aylmer: A excellent question, I thought. So it depends very much

12
00:00:44,200 --> 00:00:47,560
Sean Aylmer: on what type of portfolio you have in your superannuation

13
00:00:49,479 --> 00:00:53,120
Sean Aylmer: vehicles something. It might be a very aggressive, high growth

14
00:00:53,320 --> 00:00:55,560
Sean Aylmer: so you've got lots of shares. It may be balanced,

15
00:00:55,600 --> 00:00:57,560
Sean Aylmer: which is sort of not so much. It might be

16
00:00:57,680 --> 00:01:00,480
Sean Aylmer: very conservative where you have very few share So it depends

17
00:01:00,520 --> 00:01:03,120
Sean Aylmer: on how many shares you've got. If you take so

18
00:01:03,360 --> 00:01:07,600
Sean Aylmer: unsuber balanced fund, for example, thirty three percent international shares,

19
00:01:07,640 --> 00:01:11,000
Sean Aylmer: twenty eight percent Aussie shares. What's that together thirty three

20
00:01:11,040 --> 00:01:14,319
Sean Aylmer: plus twenty eight fifty five percent thereabouts, twenty four percent cash,

21
00:01:14,600 --> 00:01:17,839
Sean Aylmer: percent infrastructure, four percent property. So what we're talking about

22
00:01:17,880 --> 00:01:19,800
Sean Aylmer: is not just local shares, but international shares, so you're

23
00:01:19,800 --> 00:01:24,119
Sean Aylmer: getting a hit on both sides. So the median growth

24
00:01:24,160 --> 00:01:27,520
Sean Aylmer: balanced option according to super ratings in February was down

25
00:01:27,560 --> 00:01:32,800
Sean Aylmer: about zero point eight percent. It'll be down more in March,

26
00:01:32,880 --> 00:01:36,000
Sean Aylmer: no doubt. You might think zero point eight percent doesn't

27
00:01:36,040 --> 00:01:39,920
Sean Aylmer: sound that much, given the share market fell by more

28
00:01:39,959 --> 00:01:43,959
Sean Aylmer: than that. What you've got to remember is often when

29
00:01:44,480 --> 00:01:49,880
Sean Aylmer: one asset class drops in value, another asset class, bonds,

30
00:01:49,880 --> 00:01:53,600
Sean Aylmer: for example, increases in value. So a big idea with

31
00:01:53,640 --> 00:01:56,520
Sean Aylmer: superfunds is that you're spreading your risk, so you might

32
00:01:56,520 --> 00:02:00,600
Sean Aylmer: actually lose out inequities, but you might benefit in bonds.

33
00:02:01,320 --> 00:02:03,559
Michael Thompson: So this is just based on this quarter that we've

34
00:02:03,600 --> 00:02:08,240
Michael Thompson: just finished. Last year, for instance, that same medium growth

35
00:02:08,240 --> 00:02:10,960
Michael Thompson: option would have had a pretty good year based on

36
00:02:11,000 --> 00:02:12,079
Michael Thompson: the share market performance.

37
00:02:12,280 --> 00:02:15,000
Sean Aylmer: So if you talk about this financially that we're in

38
00:02:15,280 --> 00:02:18,000
Sean Aylmer: we're nine months through it. They are certainly still the

39
00:02:18,080 --> 00:02:24,519
Sean Aylmer: meeting balanced options and growth options are still definitely very positive.

40
00:02:25,320 --> 00:02:28,840
Sean Aylmer: One of the interesting trends, which is about twenty years ago,

41
00:02:29,600 --> 00:02:32,040
Sean Aylmer: you'd have about thirty five percent of your portfolio and

42
00:02:32,040 --> 00:02:34,840
Sean Aylmer: a balanced fund in ossie equities, about twenty five percent

43
00:02:34,880 --> 00:02:38,440
Sean Aylmer: in international stocks. That's switched over and in fact I

44
00:02:38,600 --> 00:02:40,800
Sean Aylmer: was super that the stories in the paper reasoning that

45
00:02:41,120 --> 00:02:44,400
Sean Aylmer: the super is going to cap how much they invest locally,

46
00:02:45,120 --> 00:02:48,280
Sean Aylmer: because you need this is not very big. Yet we

47
00:02:48,360 --> 00:02:51,680
Sean Aylmer: have a four trillion dollars superannuation market. They've got to

48
00:02:51,720 --> 00:02:54,440
Sean Aylmer: throw their money somewhere. Of that four trillion, about six

49
00:02:54,560 --> 00:02:57,440
Sean Aylmer: hundred and thirty billion dollars now is in US assets.

50
00:02:58,080 --> 00:03:01,120
Sean Aylmer: So that has risen and is rising fast. So that

51
00:03:01,160 --> 00:03:04,320
Sean Aylmer: does confused things. So when you know nowadays on fear

52
00:03:04,360 --> 00:03:06,639
Sean Aylmer: and greed we talk about the Aussie market, we often

53
00:03:06,680 --> 00:03:09,840
Sean Aylmer: talk about magnificent seven tech stocks Wall Street because that

54
00:03:09,880 --> 00:03:13,160
Sean Aylmer: actually affects our superannuation funds far more now than it

55
00:03:13,200 --> 00:03:15,639
Sean Aylmer: did ten years ago, let alone twenty or thirty years ago.

56
00:03:15,880 --> 00:03:18,880
Michael Thompson: Yeah, there's just so much money going into superannuation these days.

57
00:03:18,919 --> 00:03:21,160
Michael Thompson: What is it eleven and a half and half percent?

58
00:03:21,480 --> 00:03:22,040
Sean Aylmer: Twelve percent?

59
00:03:22,360 --> 00:03:25,800
Michael Thompson: Wow, there's a lot of money. And it also we

60
00:03:25,919 --> 00:03:28,600
Michael Thompson: talk a lot about this on our sister podcasts. How

61
00:03:28,600 --> 00:03:31,000
Michael Thompson: do they afford that? And about just the amount of

62
00:03:31,040 --> 00:03:33,360
Michael Thompson: money that we all have, many of us have in

63
00:03:33,360 --> 00:03:36,800
Michael Thompson: our superannuation and the surprising number of people who don't

64
00:03:36,800 --> 00:03:39,920
Michael Thompson: pay attention to it and who don't even know how

65
00:03:39,960 --> 00:03:41,960
Michael Thompson: they have got their money set up inside their super

66
00:03:42,320 --> 00:03:46,280
Michael Thompson: and it's as simple as doing your risk profile, deciding

67
00:03:46,360 --> 00:03:48,480
Michael Thompson: kind of what your appetite is for risk, getting some

68
00:03:48,720 --> 00:03:52,720
Michael Thompson: financial advice, getting talking to your superannuation fund because so

69
00:03:52,760 --> 00:03:55,640
Michael Thompson: many of them now have this option for advice. That's

70
00:03:55,680 --> 00:03:57,920
Michael Thompson: kind of not necessarily the full service that you would

71
00:03:57,920 --> 00:04:00,960
Michael Thompson: get from your financial advisor, but it is certainly better

72
00:04:01,000 --> 00:04:03,560
Michael Thompson: than kind of doing it alone and not getting some

73
00:04:03,640 --> 00:04:06,520
Michael Thompson: advanced and so it's just anyway, it is a topic

74
00:04:06,520 --> 00:04:08,720
Michael Thompson: of conversation that we had a lot on forever. Oh,

75
00:04:08,800 --> 00:04:11,160
Michael Thompson: I know, it's great. I think we've answered the question.

76
00:04:11,240 --> 00:04:12,680
Sean Aylmer: Yeah, I think so. I mean, what you've got to

77
00:04:12,680 --> 00:04:14,680
Sean Aylmer: remember is that share market falls and so it hurts

78
00:04:14,680 --> 00:04:18,479
Sean Aylmer: your superannuation balance. But depending on how you're invested, most

79
00:04:18,480 --> 00:04:22,760
Sean Aylmer: of us have other investments which offset the fallen equities,

80
00:04:23,080 --> 00:04:26,120
Sean Aylmer: and if you invest in bonds normally not always normally,

81
00:04:26,240 --> 00:04:27,159
Sean Aylmer: they go the other way.

82
00:04:27,320 --> 00:04:31,560
Michael Thompson: Okay, thank you, Sean, thank you, Michael, well done. Just

83
00:04:31,920 --> 00:04:35,240
Michael Thompson: gold started you. I didn't mean that to sound quite

84
00:04:35,240 --> 00:04:38,279
Michael Thompson: as condescending as it as it might have come across.

85
00:04:38,600 --> 00:04:41,800
Michael Thompson: It is a very legitimate and genuine gold Star. Remember,

86
00:04:41,839 --> 00:04:43,200
Michael Thompson: if you've got something that you would like to know,

87
00:04:43,360 --> 00:04:46,440
Michael Thompson: then Please send through your question on LinkedIn, Instagram, Facebook,

88
00:04:46,480 --> 00:04:48,160
Michael Thompson: or head along to fearangreed dot com dot a you

89
00:04:48,240 --> 00:04:50,400
Michael Thompson: and send you a question in through there. I'm Michael

90
00:04:50,440 --> 00:04:52,440
Michael Thompson: Thompson and this is us Fear and Greed