With the U.S. growing at an anaemic level, and Europe balancing on the brink of recession, we are yet to see signs of meaningful recovery from the global financial crisis. Negative headlines continually rattled the markets with few positives to cheer about, except for perhaps resilient corporate earnings and moderating inflation. We think in 2012 every basis point of return will be hard fought. Regional diversification will need to be firmly in place, as the economic centre of gravity will continue to shift eastward. As returns from traditional investments remain flat, alternatives will rise in importance and volatility, while certainly causing market stress, will also bring opportunities for dynamically-managed portfolios.  

As a retiree, your finances are at their most vulnerable at the point when you retire. At this time, there is significantly less money being contributed (if any) and the value of your portfolio relies heavily on the investment returns received. If these returns are poor in the early years following retirement, it can have devastating effects on your portfolio. Keeping a close eye on your retirement assets and altering your investment decisions and retirement goals in the early years can significantly change your future financial position for the better.  

For many SMSF trustees, the events of the GFC really put the pressure on to ‘do something’. Scared, angry and sometimes even panicked, many people felt that action needed to be taken over the rapidly falling value of their portfolios.