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For what it’s worth: why what you pay for an investment is a key driver of its return…


For what it’s worth: why what you pay for an investment is a key driver of

its return…and how do valuations look now?


Dr Shane Oliver, Head of Investment Strategy & Chief Economist insights


Starting point valuations – like yields and price to earnings ratios – are key drivers of medium-term investment returns.


For growth assets it’s often more complicated, with the level of interest rates playing a big role.

At present, valuation starting points for term deposits and bonds have improved. For shares they suggest constrained return potential from US shares but are better for Australia.



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