What Fund Managers Are Saying About the Australian Market—and What It Means for You

Australian shares had a strong run last year, with Betashares commenting that the top 200 Australian companies, ASX 200 indices, performed strongly with total returns of 11.4%, respectively. That’s great news for investors who benefited—but here’s the challenge: they also said valuations now look stretched, and some economists say the earnings outlook isn’t as strong for Australian equities.

Betashares is noting that while bank stocks have been a key driver of returns, future growth isn’t guaranteed. With reporting season just around the corner, there’s plenty of uncertainty about what’s next.

This is why diversification and rebalancing are so important. No one has a crystal ball, and just because an asset has performed well doesn’t mean it will keep delivering. The smartest investors spread their risk across different asset classes and markets—ensuring their portfolio is positioned for long-term growth, not just the recent past.

At Thomson Wealth, we take a thoughtful approach to investments—one that’s guided by real experience. I’m an avid investor myself, and I believe it’s important to lead by example. When working with clients, we carefully consider their investment risk tolerance and preferences. Whether you’re an accumulator looking for growth or a retiree seeking reliable income, we tailor your strategy to align with your goals, investment timeframes, and even specific values—such as ethical investing.

Rebalancing isn’t just about managing risk; it’s about ensuring your portfolio reflects what matters most to you while staying on track for long-term growth.

We are also not vertically integrated with a super fund or investment arm - meaning we aren't encouraged to channel you into particular investment portfolios - keeping your best interests at the heart of all investment advice.

If you’ve been too busy to review your investments lately, book a 15min chat today to discuss how we can take care of this for you.

​Image: The 2024 Vanguard’s Annual Index Chart tracks the returns of major asset classes through different market conditions over the last thirty years. Past performance is not an indicator of future performance.