Invast Blog

Diversification a must, after recent mauling of Australian Banks

We’ve been speaking about the vulnerability of banks during this downturn. We still feel the Australian banks will continue to trend lower over the next year. Unfortunately many Australian investors are over-exposed to the banks. They have a high concentration to the banks in their portfolio. Even the ASX200 is over exposed – more than one fifth of the entire index is exposed to the big four banks alone.

We wrote a review on the banks and their exposure to several strategies on our PortfolioInvestor platform last week. Our focus today is to pinpoint a strategy which benefits from falling markets. It is titled “Diversified Asset Bearish” and the numbers speak for themselves – up an amazing 70% over the past year and 15% higher over the past month. It has a risk rating of 3 out of 5.

The strategy is unique in that it is composed of just four securities – all short positions on major diversified markets. The best performer has been the short position on the oil price, up an amazing 286% over the past year. One could say that oil is bottoming, but the short position has generated a positive return of 15% and %% in the past week and month respectively.

The numbers speak for themselves. The beauty of the PortfolioInvestor platform is that it provides deep diversity and choice. As this strategy has shown, investors can benefit from rising and falling markets. We continue to see downside pressure to markets in the coming weeks, this strategy could provide a handy hedge as part of a very well diversified portfolio.

To find our more above Invast’s PortfolioInvestor platform – and strategies likeDiversified Assets Bearish– click here.

Best regards,

Invast Investment Committee

These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email Alternatively, use our live chat facility on

*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.


Featured Portfolios

The Invast PortfolioInvestor platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.

Smart Banks Hong Kong

Smart Banks Hong Kong

Access Hong Kong banks using smarter weights to improve the risk/return profile of the sector and reduce excessive exposure to the sector’s heavyweights. This portfolio will be executed as a CFD.

Diversified Assets Bearish

Diversified Assets Bearish

A selection of inverse ETFs that short-sell equities and commodities can benefit from a correction in these assets. This portfolio will be executed as a CFD.

To find out more about our Strategic Investment Portfolios and the PortfolioInvestor platform, please click here.

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