Invest
Volatility looms, but don’t panic, investors told
Short-term event risks – including the Brexit referendum, the Spanish election, Australian election, US republican and democrat conventions – will only cause near-term uncertainties in markets, according to one leading Australian economist.
Volatility looms, but don’t panic, investors told
Short-term event risks – including the Brexit referendum, the Spanish election, Australian election, US republican and democrat conventions – will only cause near-term uncertainties in markets, according to one leading Australian economist.
AMP chief economist Dr Shane Oliver said that while the past week has been dominated by Brexit worries, which have pushed down most share markets, in the long term it is expected that shares will continue to trend higher this year.
Dr Oliver said this will be helped by relatively attractive valuations, ultra-easy global monetary conditions and continuing moderate global economic growth.
Brexit concerns over the past week have seen US shares drop 1.2 per cent, Eurozone shares lose 2.4 per cent, Japanese shares, which were also hit by the absence of monetary easing, fall six per cent, Chinese shares lose 1.7 per cent and Australian shares fall 3.7 per cent.
"The Brexit vote is fast approaching and nervousness in financial markets has been building over the last few weeks, particularly as the leave campaign – focusing on the more emotive topic of immigration – has been showing a lead over remain," he said.
The eight per cent fall in Eurozone shares, he said, is likely overdone, however.
While shares may fall a little further if the leave campaign wins, "Europe is likely to hang together as it did through its sovereign debt crisis", he said.
Although the polls have been in favour of the leave campaign, he still predicts a vote to remain.
In terms of bonds, Dr Oliver said lower bond yields point to a soft medium-term potential from them, but it is difficult to have a bearish outlook in a world of fragile growth.
"That said, the recent bond rally has taken bond yields to ridiculously low levels, leaving them at risk of a sharp snapback," Dr Oliver.
Capital city dwelling price gains are expected to slow to around three per cent over the year ahead, as the heat comes out of Sydney and Melbourne thanks to toughening lending standards and pockets of oversupply, he said.
"Prices are likely to continue to fall in Perth and Darwin, but price growth may be picking up in Brisbane."
Commercial property and infrastructure, on the other hand, are likely to continue benefiting from the ongoing search for yield by investors.
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
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...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
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
