The fitness levels on display in the last Sunday’s All Ireland final once again had us in awe. Similarly, when I watch Rugby and many other sports I marvel at the speed, strength and athleticism of today’s players.
Matches have huge intensity levels and yet the accuracy executed is incredible. Often the phrase “A Different Era” is used when comparing todays stars to those of previous decades.
From an investment perspective we are definitely in a different era.
Banks have slashed deposit rates in an attempt to return to profitability. Indeed, some banks now charge customers for placing money on deposit.
So we know we need to move away from bank deposits paying near-zero rates however the expectations for returns has been lowered across all asset classes for the next 10 years.
In May 2008 an investor in a German government bond was guaranteed to receive 4.45% per annum over the following 10 years. The same investment yesterday will pay an investor just 0.02% per annum until 2026.
The multi-decade lows for investors mirrors the intensity of a hard fought game from your favourite sport where the margins between victory and defeat are now wafer thin. Check the strength, conditioning and accuracy of your investment or pension portfolio.
The best results in investing also goes to the smartest, leanest and fittest.