Don't discount the value of a guaranteed return

James Marlay

Livewire Markets

Over the weekend I had the time to listen back over one of the recent interviews with Satyajit Das. Das highlights his take on how to invest in this current environment. He makes the following points: 1) Invest a lot in ensuring you as an individual have a very high income earning capability through education or other mechanisms 2) In this environment capital preservation should be the first consideration in your investment process – ahead of both income and capital growth. Das then explains why investors should not ignore the current ‘low rates’ of income on term deposits and bonds. He uses the example of a Japanese fund manager who invested in 20 year Japanese bonds at 3% in 1996. At the time it seemed a low return, however, these rates have not been seen since. “You’ve got to be really careful to look at even low yields but which are guaranteed and secure and ignore. It’s very, very important that you understand that.” I’ve market the video segment here:


2 topics

James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

Expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.