Unlisted assets pose the greatest risk to investment portfolios in the next six to 12 months, according to AMP Capital Investors chief economist and head of investment strategy Shane Oliver.
"It is true that they did not move up as much as listed assets did through the bull market, but by the same token it is hard to see a 60 per cent fall in listed property trusts having no consequences for unlisted property," he said.
"So I would think there will be some fallout there and I think that is maybe already starting to become evident," Oliver said.
At the opposite end of the spectrum, Oliver cited equities as still the best value assets on a long-term basis.
"Shares are very good value on a long-term basis, there is no getting away from that. It is far better to buy shares when they have fallen 50 per cent than when they were at 6800 a year ago," he said.
In regard to a recovery of the equity markets, Oliver predicted investors would see evidence of it during the first half next year.
"If the US economy bottoms out around the middle of next year and you work backwards, normally shares move six months ahead of an economic recovery. So if you have an [economic] recovery some time in the September quarter, that would suggest that shares should bottom out some time around the March quarter," he said.
In the aftermath of the global downturn, Oliver said he expected to see investors gravitating back toward simple investment sectors.
"In many ways you might see a back-to-basics world where there are just four asset classes - shares, government bonds, cash and direct property," he said.
