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.
Axa Wealth International has reported flat growth in its annual results against a backdrop of stock market volatility and pension reforms.
UK online investment platform Rplan saw a 280% year-on-year increase in flows into Indian-only funds in 2015, as investors looked to capitalise on the stock market’s strong performance over the past year.
Fidelity Solutions’ multi-asset team looks at the reasons why investors should look through the current volatility.
China’s gross domestic product growth slipped to a 25-year low of 6.9% in 2015 it was confirmed Tuesday, but markets were largely unconcerned.
It has been quite a start to the year in financial markets and the initial impulse many will have is to batten down the hatches and try to weatherproof portfolios.
Four main themes have been driving the recent volatility in markets: China, commodities, the Federal Reserve and idiosyncratic risk.
A great deal has already been written about the challenges facing asset allocators in a world where bonds yields have been pushing lower for the better part of 30 years.
It is probably a good thing that most investors don’t tend to believe in bad omens.
