There continues to be evidence to support the Jamieson Coote Bonds team's thesis that investors should be re-assessing their portfolio construction and risk allocations to avoid unintended heightened bank/financial related exposure. JCB's approach is one that diversifies investors away from such exposures whilst providing a cornerstone defensive portfolio allocation. These bank/financial related exposures include the likes of Australian Bank shares, hybrids, negatively geared property, term deposits, corporate credit and cash at bank.
JCB Monthly Snapshot
(1) S&P downgrades the Australian financial system as property prices fall nationwide in May;
(2) Hybrids cut to junk as S&P do not expect the Government to support major bank names;
(3) David Copperfield (not the illusionist) calls the outlook from 1849;
(4) Obstruction of Justice or Obstruction of Greatness?
(5) Observations of buyers and sellers in Australian Govt Bonds.
Read more via The JCB Monthly Insights update here