Invest
‘Be cautious on bargain hunting,’ investors told
In the current sharemarket, those investors who are “bargain hunting” should be cautious while volatility and uncertainty remain, according to one fund manager.
‘Be cautious on bargain hunting,’ investors told
In the current sharemarket, those investors who are “bargain hunting” should be cautious while volatility and uncertainty remain, according to one fund manager.
The US Fed's failure to raise rates reinforces investor concerns about the health of the world economy, particularly China, said George Lucas, Instreet’s managing director.
Mr Lucas pointed out that the chair of the US Federal Reserve, Janet Yellen, has sought to calm markets by saying a US rate rise is likely to happen this year.
He noted her comments come after the Fed kept rates steady at its September meeting, which added to volatility in the market.
“Yellen’s recent comments calmed markets, but it seems to be a case of too little too late,” Mr Lucas said.
“Against this backdrop, China’s flash PMI falling from 47.3 in August to 47.0 in September doesn't help,” he added.
Unless SMSF investors are planning to hold for a medium- to long-term timeframe, they should be careful about “bottom picking” in the current market.
“Overall, it’s too hard to make a call at the moment because of volatility in all markets. We would advise caution on bargain hunting while the uncertainties remain,” Mr Lucas told nestegg.com.au’s sister publication SMSF Adviser.
These comments follow predictions from chief economist at BetaShares David Bassanese that the domestic market is only two thirds of the way through its correction.
“It’s hard to think that the worst is over. The market has corrected, but it’s not super cheap,” Mr Bassanese told nestegg.com.au’s sister publication SMSF Adviser.
“Earnings remain under pressure, the US is [probably] going to raise interest rates and we’re still not seeing a lot of clarity in terms of the Chinese outlook or how the Chinese authorities are responding to this slowdown.
“There’s more negatives than positives floating around at the moment, so it’s hard to believe we’ve seen the worst at this stage.”
RELATED ARTICLES
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
