Chris Brycki

speaker

759 appearances 3 recordings 2 series first heard Mar 2022 last heard 30 Jul

Chris Brycki’s voice in public audio — every appearance, attributed to the second.

Trend

recordings per month · last 12 months

Recordings per month over the last 12 months — 2 in all, peaking in Jul 2026 with 1.

Appearances

newest first · ▶ plays the moment

Australian Finance Podcast · Investing in defensive assets: Cash, bonds & gold · 21 Mar 2022 podcast

Sure.

I mean, I think it's pretty important for people to, first of all, work out what a defensive asset is.

And I think definitions definitely vary in the industry quite widely.

In my mind, and we put in sort of submissions to various government and other processes around this because there's a lot of debate in the super industry, but

I agree with ASIC's definition of a defensive asset.

So if you look on the ASIC Money Smart website or on ASIC's website, they say a defensive asset is cash or government bonds.

And actually, I think that's pretty close to the truth.

Cash is defensive because when the market falls, it holds its value.

And then bonds generally do one better and actually rise in a falling market.

That's what makes these assets defensive.

Gold, I put in the same bucket as cash.

Gold is the ultimate original form of cash.

I think these days there's a lot of other assets that some people consider as defensive.

Often they're assets that have a high income stream and low growth.

So it might be, you know, hybrids, emerging markets debt, you know, other, you know, yield type assets.

In my mind, they're not really defensive assets, although they may not give as high a capital growth as, you know, shares or, you know, typical growth investments.

The reason in my mind why they're not defensive assets is that when markets fall and particularly during very bad market episodes like we saw in March 2020 or in the financial crisis, these high yield type assets very much move in the same direction as shares.

So they don't provide any level of protection or very little levels of protection.

So while they may not have a high correlation or they may not move in the same direction as shares when markets are doing well,

they do move in the same directions when markets are performing poorly and that's exactly when you need defensive assets in your portfolio um and so in my mind these aren't defensive assets and i think there is a lot of confusion out there because people you know wrongly think um you know something with a high yield that doesn't have a lot of growth is defensive

Showing 541–560 of 759 · page 28 of 38