Shift to defensive assets urges Architas
Architas has warned that investors should begin shifting towards defensive assets before volatility strikes markets in the latter half of 2017.
Architas has warned that investors should begin shifting towards defensive assets before volatility strikes markets in the latter half of 2017.
The US airstrike on Syria and disappointing jobs data immediately brought down markets last week, and investment managers are beginning to protect their portfolios against more of the same.
Investors risk being lulled into a false sense of security in the current low-volatility environment, according to Brooks Macdonald’s Niall O’Connor.
Ever get the feeling you’ve been cheated? As I write, the masses are rebelling against a momentous decision that has thrown the free world off its axis… and that’s just the changing shape of the Toblerone.
European investors have been dismissing US equities as too expensive for a couple of years. But as the S&P 500 continues to outperform other equity markets, appetite for the asset class is again on the rise.
Investors will be rewarded for their patience if they maintain portfolio discipline and don’t let short-term volatility cloud their long-term investing goals, says JP Morgan Asset Management.
Volatile markets characterise 2016, and investors are warming to investment strategies that reduce risks, according to Tom Naaijkens, client portfolio manager for quant equities at Robeco.
As the month of May trundles into view investors will be thinking about the traditional summer-proofing of portfolios, but the shrewdest among them may see more opportunity than danger.
Post the 2008 financial crisis, many investors made the grim discovery that a relatively poor job had been done about the risk management of their portfolios, says Nigel Watson, sales director, VAM Funds.
Financial markets have undergone substantial changes as a result of regulatory shifts, but according to Pimco’s global head of portfolio risk management, William de Leon, much of the volatility currently in evidence has more to do with central-bank induced uncertainty than illiquidity.
Investors must adapt to a repeating market cycle of rising global growth fears, subsequent sell-off and rescue by ‘dovish’ central banks, said David Riley of BlueBay Asset Management.
In spite of the current market volatility there are two key reasons why investors should be building up their portfolios now, according to deVere Group founder and chief executive Nigel Green.