Market may bottom further
Investors should brace themselves for one more “gut-wrenching” capitulation in equity markets before there is some long-term recovery, according to the chief investment strategist with HFA Holdings, Jonathan Pain.
Pain told the PortfolioConstruction Investment Summit in Sydney today that he believed there would be a recession in every developed country over the next six months, making the next six months ghastly for investors.
However, he said bottom-up equity analysts had finally caught up with the situation and were cutting earning estimates, while capital markets appeared to be returning to some degree of normalcy after what he described as “a glacial thaw”.
Pain said it was this factor that represented a ray of home in what was an otherwise very gloomy tunnel.
Another speaker at the summit, the adjunct professor of the School of Finance and Economics at the University of Technology, Sydney, Jack Gray, said one of the problems in the current financial market was the friction between principals and agents.
“There are so many agents in this business and they cannot all be adding value,” he said.
Gray said investors should focus on portfolios and not stocks, and focus on valuations within portfolios.
AUTHOR
Mike Taylor
Recommended for you
Multiple industry organisations have shared their thoughts on AFCA’s proposed rules amendment, supporting the idea of firms being named publicly when they fail to comply with determinations.
Channel Capital has appointed a head of investment oversight who joins from 14 years at asset consulting firm JANA Investment Advisers.
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
