ROOT
Could the ‘ghost of stagflation’ provide an opportunity for investors?
Investors should ensure they are well diversified as market volatility persists, according to deVere’s Nigel Green.
Could the ‘ghost of stagflation’ provide an opportunity for investors?
Investors should ensure they are well diversified as market volatility persists, according to deVere’s Nigel Green.
deVere Group CEO Nigel Green has suggested that “enormous opportunities” are available to investors who are adequately diversified as the ghost of stagnation looms.
With central banks including the Reserve Bank (RBA) now starting to tighten interest rates, Mr Green highlighted the importance of having proper strategies in place to help mitigate risk.
“The central banks are close to running out of tools to try and tackle persistent inflation and falling GDP growth,” said Mr Green.
“We should prepare to once again see the ghost of stagflation – something policymakers were hoping we would never return to after the 1970s, when higher consumer prices fed into wages as workers demanded higher wages to match price increases.”
Fears were further stoked after the Australian Bureau of Statistics (ABS) reported that the annual pace of inflation reached 5.1 per cent during the March quarter while underlying inflation sat at 3.7 per cent.
Moving forward, Mr Green said that high volatility was expected to continue and warned that major sell offs would remain on the cards, particularly as supply chain disruptions and other ongoing headwinds persist.
“However, working with a good adviser, many investors will be seeking out the potentially hugely rewarding buying opportunities that are being presented by this turbulence,” he noted.
“They’re moving to pick up some high-quality stocks that have a solid future at what they will see as ‘discounted prices.’ They will not want to miss out. After all, there are always winners and losers in bouts of volatility – and this is where a good fund manager comes in.”
Rather than being spooked by developments over the shorter term, Mr Green encouraged investors to be diversified through a considered mix of asset classes, sectors, regions and currencies that offer protection from market shocks.
“Stagflation can be viewed as a ‘worst of both worlds’ scenario. But there are enormous opportunities right now too for investors,” he added.
“Don’t be one of those investors who sit on the sidelines right now.”
RELATED ARTICLES
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
State Street Global Advisors rebrands as State Street Investment Management
State Street Global Advisors has rebranded as State Street Investment Management as the world's fourth-largest asset manager seeks to reflect its growth strategy and strengthen client partnerships. Read more
Invest
North platform launches 'Blend' model portfolios with BlackRock and Lonsec
AMP's North platform has launched a new model portfolio offering called 'Blend' in partnership with BlackRock and Lonsec Investment Solutions, targeting advice practices that want customised ...Read more
Invest
Australian investors add $8.6 billion to managed funds amid global uncertainty
Australian investors demonstrated cautious resilience by adding $8.6 billion to managed funds between January and May 2025, according to new data from Calastone. Read more
Invest
ASX companies gear up for end of financial year reporting season
ASX-listed companies are preparing for the end of the 2025 financial year, with many seizing opportunities to engage with investors through roadshows and industry conferences. Read more
Invest
Digital finance innovation could deliver $19 billion annual boost to Australian economy
Digital finance innovation has the potential to deliver $19 billion in annual economic gains to Australia, according to new research from the Digital Finance Cooperative Research Centre. Read more
Invest
Echelon completes $400,000 acquisition of Northern Territory gas permit
Echelon Resources has completed the acquisition of a 100 per cent interest and operatorship in Exploration Permit EP145 in the Amadeus Basin, Northern Territory, for $400,000. Read more
Invest
Institutional investors return to risk-taking as tariff fears ease
Institutional investors moved back towards risk-taking in late May following delays to trade tariff implementation, according to State Street's latest Institutional Investor Indicators. Read more
Invest
State Street Investment Management holds steady on ETF model portfolio allocations
State Street Investment Management has maintained its asset allocation for its Risk-Based and Target Income ETF Model Portfolios despite market volatility and adjustments by other major players in the ...Read more
Invest
State Street Global Advisors rebrands as State Street Investment Management
State Street Global Advisors has rebranded as State Street Investment Management as the world's fourth-largest asset manager seeks to reflect its growth strategy and strengthen client partnerships. Read more
Invest
North platform launches 'Blend' model portfolios with BlackRock and Lonsec
AMP's North platform has launched a new model portfolio offering called 'Blend' in partnership with BlackRock and Lonsec Investment Solutions, targeting advice practices that want customised ...Read more
Invest
Australian investors add $8.6 billion to managed funds amid global uncertainty
Australian investors demonstrated cautious resilience by adding $8.6 billion to managed funds between January and May 2025, according to new data from Calastone. Read more
Invest
ASX companies gear up for end of financial year reporting season
ASX-listed companies are preparing for the end of the 2025 financial year, with many seizing opportunities to engage with investors through roadshows and industry conferences. Read more
Invest
Digital finance innovation could deliver $19 billion annual boost to Australian economy
Digital finance innovation has the potential to deliver $19 billion in annual economic gains to Australia, according to new research from the Digital Finance Cooperative Research Centre. Read more
Invest
Echelon completes $400,000 acquisition of Northern Territory gas permit
Echelon Resources has completed the acquisition of a 100 per cent interest and operatorship in Exploration Permit EP145 in the Amadeus Basin, Northern Territory, for $400,000. Read more
Invest
Institutional investors return to risk-taking as tariff fears ease
Institutional investors moved back towards risk-taking in late May following delays to trade tariff implementation, according to State Street's latest Institutional Investor Indicators. Read more
