Thoughts on Super Performance in 2022

What's the general feeling about how super is going to perform in next 12 months.

Currently I am on a balanced option (with AustralianSuper), which returned around 20% The higher risk was 24%.

With some talk of an economic crash (especially from USA), what do posters think good performance should be for foreseeable future.

 

Usa def overvalued, aus ok but would be affected if us stocks crash. Some great yields around for blue chips eg bhp, wbc. Ive put some more money there but just guesswork. Lithium stocks have kaboomed, maybe pilbara more upside. Either way, when you compare return on income of asx v resi property then asx wins hands down. But no one thinks income is important anymore so go figure. Transfer it all to bitcoin.

 

I can guarantee share prices will be stable for the foreseeable future. The performance after the market opens I have NFI. I do know in the unforeseeable future gains will be compounding at 5% plus p/a .

 

So last year was 20% ish for mine too. The two year average is about 10% which is close to the long term average for my fund

 

Bitcoin it is.
Cheers

 

Yup, just make sure you borrow as much as you can and youll be a billionaire in no time.

 

Super is not an investment, it is a vehicle for holding investments.

If one’s Super is fully invested in cash, then it will perform very bad.

… and so on.

 

Keirank,
Thanks for reply.
I don't quite follow your post.

My main reason for asking was to help me decide on "investment options" Your Investment Options | AustralianSuper

 

You answered your own question immediately after with this:

You aren’t asking Super will perform in 2022 (as per the thread title) but how the underlying investments will perform.

 

Now I understand.
Thanks for clarifying

 

Hi William, I'd be careful about quoting the 20% returns.

Our Superannuation Performance | AustralianSuper
2019-2020 - 0.52% return
2020-2021 - 20.43% return

This isn't the most accurate way, but if we average them across 2 years It is 10.48% return.

I do not have a crystal ball. However I will say that my strategy will not change. I will be putting in the same amount inside super and outside super monthly.

 

My Aus super balanced was 10pct a year for last 10 years, but that included a lit of post gfc rebound. I certainly dont expect that for the next 10. Id be happy with 7pct a year, would double money in 10 years. But maybe 5pct is more realistic. Depends how much money they print.

 

Fair comment on 20% I was only using 20% v 24% to compare balanced option v high risk, and try to decide on whether to change (from balanced).

My gut feeling is to avoid high risk going forward and stay with balanced.

I agree the markets going forward will be unpredictable, and after an average of 20% the next few years will be more like 5-7% (as per @Squirrell comments).

Where would you recommend investment "outside super"?

 

I would be disappointed/surprised if I don’t achieve total returns of 16% in the next 12 months.

 

Anyone chasing 2021 style returns in 2022 is bound to have the wrong expectations and may have a risk profile that could see losses. 2021 was a mathematical rebound after markets dropped between March and June 2020 and then rose using a low base at June 2020 to "recover". The 2021 growth was largely rebound from the 2020 collapse and recovery. The commentary from industry experts and fund managers isnt indicating major continued growth across the board. Inflation and rates and supply shock issues could push costs higher but not values.

Its ironic that most commentators gave their views in late 2021 about 2022 calendar year that didnt consider the rapid changes from omicron evolving at the pace it has. Things are rapidly evolving and will continue to. Who would have thought a month ago major supermarkets would struggle to have staff and supply chain problems getting goods from warehouse to shelf and case numbers . And the proposed break out of travel has stalled to a degree. At present there seems a lot of wishful thinking.

 

Index funds all the way. I don't buy premixed like VDHG or DHHF because they have exposure to the credit market (cash and bonds)

VAS
VTS
VGS

 

Thanks

 

Excuse my ignorance..
What is the best way to get into indexed funds?
Should I be looking at a SMSF, or is something like Australian Super members direct a good option Member Direct | AustralianSuper

 

Get a trading account and buy them directly. Eg nabtrade.

 

Squirrel,
Thanks for reply.

My thoughts on Super based platforms relate to whether you can somehow claim Tax relief.