Latest Financial News from 
'Money Management'

 

Boyce Pty Ltd (AFSL 544077) ABN: 45 660 258 524

RSS

The Global Financial Crisis 10 years on - lessons learned and can it happen again?

The Global Financial Crisis 10 years on - lessons learned and can it happen again?

31 August 2017

Elizabeth Timmins, an Advisor of Boyce Financial Services in our Cooma office recently uploaded the following article from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital. 

It seems momentous things happen in years ending in seven. Well, at least in the last 50 years starting with the “summer of love” in 1967 and the introduction of the Chevrolet Camaro. But after that, it was downhill with Elvis leaving the building in 1977, the 1987 share market crash, the Asian crisis of 1997 and the GFC that started in 2007. While Lehman Brothers didn’t go bankrupt until September 2008, the GFC’s initial tremors occurred in 2007. Financial markets really started to take notice in August of that year, with shares taking a big hit before rebounding to new highs for US and Australian shares in October/November 2007 ahead of a roughly 55% decline into March 2009. This note looks at the main lessons for investors from the GFC and whether it can happen again.

In his most recent “Oliver’s Insight” column, AMP Capital’s Dr Shane Oliver looks at the key lessons for investors for the Global Financial Crisis (GFC), the importance of proper diversification and asset allocation, and another boom bust cycle which is inevitable at some point, but will be very different to the GFC.


Download the PDF to read the full article by Dr Oliver here.

View More