Nasdaq collapse worse than 1929 crash
The collapse in the value of technology stocks now outweighs the crash of 1929 on Wall Street, according to van Eyk Research managing director Steven van Eyk.
Speaking at last week's Financial Planning Association Sydney chapter lunch, van Eyk says the Nasdaq index fell from its high of about 5200 in the middle of last year to below 1700 a few weeks ago.
Perpetual head of equities Peter Morgan says the fluctuations in the stock
market in recent times is unprecedented.
"In the 11 years I have been in the market, I have never seen the ups and downs we have witnessed over the past 15 months," he says
The volatility has been kind to Perpetual Investment's value style which has sent its Australian equities funds to the top of the performance league tables.
"Our first priority is the quality of the companies which has guided us away from some of the big mistakes other fund managers have made," Morgan says.
While Perpetual has ridden the value market well, growth manager JB Were has also weathered the storm over the past year, producing top quartile performance for its Australian equities funds.
JB Were chief executive Michael Clarke says that by selecting and maintaining stocks based on emerging economic themes such as globalisation, ageing population and rapid technology advances, fund managers are well placed to ride volatility over the long term.
Barclays Global Investors (BGI) head of equities Morry Waked says BGI's style neutral stance helps reduce the volatility in a client's portfolio.
"Markets tend to favour value and growth styles at different times. By adopting the best of both styles, we can smooth out some of that volatility," Waked says.
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