How long is a full market cycle?
There’s no set period in moving through each stage. This is because each phase of the cycle can vary in length, sometimes lasting weeks or even years. Different stages can be affected by economic and socioeconomic factors such as trade issues, interest rates, investor sentiment and pandemics.
How market cycles affect asset classes
Different asset classes, such as shares and unlisted property, can respond differently to the underlying factors that affect each phase of the market cycle. This is usually associated with the amount of risk of each type of asset and how individual assets respond to economic conditions.
Historically, higher risk investments like shares tend to perform well in a bull market but have lower returns in a bear market when compared to more defensive assets such as fixed income and cash.
Having a diversified portfolio could help reduce volatility for investment returns and positively impact your super balance.
AustralianSuper’s investment approach
Our global investment team looks at economic and investment data to better understand how different asset classes are likely to be impacted through each stage of the market cycle.
By forecasting the next phase of the cycle, we can adjust the portfolio to take advantage of investment opportunities and manage risk. Both return and risk objectives are considered, ultimately looking to grow members’ retirement savings over the long term.
While changes in your balance can be worrying, market fluctuations are normal. That’s why keeping a long-term focus is important.
Just making decisions based on short-term considerations — like switching investment options or withdrawing your super early — could have a significant impact on how much super you’ll have when you retire.
To learn more about our investment performance, visit australiansuper.com/compare-us/our-performance.
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.
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This document has been prepared for the benefit of members and partners of ClubsNSW, and is intended for general information only and does not constitute legal or other professional advice. You should consider your own individual circumstances and obtain your own independent advice before acting on this document. All copyright subsisting in this document is owned by, or licensed to, ClubsNSW or its contributors. Except for authorised use by members and partners of ClubsNSW in their own organisations, this document must not be reproduced, communicated, or otherwise disclosed in any form by any means without the prior written consent of ClubsNSW. If you are unsure about your rights, please contact ClubASSIST on 1300 730 001. © ClubsNSW or its contributors 2023
