Investors’ pessimism is driving mistakes

Australian Unity has reported that, despite a resilient recovery internationally from the global financial crisis, many investors are still feeling pessimistic about the world economy which is causing them to make mistakes. Two major mistakes highlighted include avoiding investments that appear to carry any risk and investing heavily in Treasury bonds, believing that inflation is dead and these bonds are risk-free. Australian Unity predicts that inflation in the US could return quickly, and investors making these mistakes could be caught out.

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