Investors are “on the verge of an existential crisis”, according to a new research paper.
In the paper, ASU Associate Professor of Management, Michael Stearns, found a drop in the average returns of the investment classes it was testing in recent years.
The research was conducted in partnership with a number of Australian universities and investment managers.
Stearns said the paper’s findings were “very concerning” and were a “realisation that the investment world is struggling to cope with a downturn in the market”.
“This decline in the returns of investment classes has coincided with a significant decrease in the amount of capital available for investment and a general sense that there is a mismatch between the amount that people can expect to earn in the future and what they are actually earning,” he said.
“We have been looking at this for a number a years now, but it has been really important to recognise this gap.”
Stearsons paper looked at five different investment classes, each of which has different requirements, including those which require an investment to be made in a particular asset class.
A recent study by the Reserve Bank of Australia (RBA) found there were now more than 50 different investment types, with many more not being recognised.
One of those was the “fixed income” investment, which requires investors to invest in a defined range of assets.
This is not something that is widely recognised by the market.
Another is the “short-term” investment.
It involves investing in the economy for longer than five years.
It is usually the type of investment that is most profitable, but is not recognised by investors.
Finally, there are “other investment classes”, such as the “futures” and “asset allocation” classes.
For the paper to be valid, it must be valid for the period it covers.
When the Reserve bank studied this, they found the market was not “accurately capturing” the actual returns that were being made.
While a majority of the portfolio class “fundamentals” investments made up almost all the portfolios, there were still many “other” investment classes.
In addition, the “value asset allocation” class, which includes the “equity” portfolio, was the most profitable asset allocation class, according to the RBA.
So, the findings from the RBS study indicate that the “resurgence” of the “doom and gloom” investing classes may be a realisation.
But not all the analysts in the research team agreed that a slump was imminent.
“The research results suggest that the current investment outlook may be ‘on-going’ in some areas, but not all,” the paper said.
The researchers also noted that the rise in returns was a “dramatic increase” in a “key” investment class, the investment in property. “
The evidence indicates that the overall outlook may not be ‘in a panic’ as has been the case in the past, but instead is more positive than it appears at the moment.”
The researchers also noted that the rise in returns was a “dramatic increase” in a “key” investment class, the investment in property.
Property investors were “most likely” to be the ones suffering the most, but were not the ones who would suffer the most in a slump.
Some of the researchers suggested that the slump could be temporary, and that the return to the “normal” investment cycle could be sustained.
However, Professor Stearn suggested that such a recovery would not be permanent.
He said: “The risk of a downturn is not necessarily that it will be permanent.”