Invest
Global firm gives tips for surviving market volatility
With geopolitical factors likely to trigger further spikes in volatility for the rest of 2016, one investment manager has outlined strategies for dealing with challenging markets.
Global firm gives tips for surviving market volatility
With geopolitical factors likely to trigger further spikes in volatility for the rest of 2016, one investment manager has outlined strategies for dealing with challenging markets.
Investment management firm State Street Global Advisors said, in a global market outlook, volatility is likely to remain a feature of markets as they contend with broader growth concerns, the capacity of central banks to stimulate economies and other geopolitical events including elections in the US and across Europe.
In the current environment, investors should be taking advantage of negative correlations.
“We generally see negative correlations between equities and bonds when interest rates are low,” the report said.
“This relationship has been consistent across the globe and across time. A negative correlation makes high-quality long bonds particularly effective at reducing equity risk, keeping this asset class attractive, despite low yields.”
The report also suggested boosting exposure to growth assets.
“With more capital to deploy, investors can seek return in traditional growth assets, like equities, high yield, real estate and private equity,” it said.
However, State Street Global Advisors said it was cautious on emerging market equities.
“We continue to monitor progress on structural reform in China and other countries, as well as government efforts to stabilise and stimulate growth in China.
“We see insufficient evidence to suggest that incremental growth in emerging markets is likely to be superior to that of developed ones.”
The report said earnings growth in this region appeared uneven and lacked momentum.
Stock market
Beware the microbubbles, expert warns
Investors are being warned that concerns about the sharemarket being overvalued are overblown, with microbubbles posing the imminent risk to investors, an expert has stated. ...Read more
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Beware the microbubbles, expert warns
Investors are being warned that concerns about the sharemarket being overvalued are overblown, with microbubbles posing the imminent risk to investors, an expert has stated. ...Read more
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
