Hold firm through volatility: Fiducian
Investors should stay true to their investment strategies despite market volatility, if they want to secure medium to long-term returns, Fiducian believes.
In its latest market insight, the investment manager reported that the heightened level of volatility seen since the start of the year had significantly improved what it believed were already fair market valuations.
"Across the world, monetary policy remains essentially expansionary, with ‘quantitative easing' very much in place in Europe, Japan and other economies, while interest rates almost everywhere remain at all-time historical lows," the investments manager said.
"On top of this, fiscal policy is also becoming more expansionary after a lengthy period of attempts to rein-in government deficits, especially in Europe and even the US and China.
"All of these programs are aimed at boosting investment and even consumer spending and this is very likely to be effective in time.
"As and when it becomes clear that such policies and programs are lifting growth, we are likely to see stock markets reap the benefit and return to an upwards trend.
"We continue to recommend that investors maintain their investment strategies and hold any positions they may have in share markets with the aim of achieving solid returns over the medium to longer-term."
AUTHOR
Nicholas O'Donoghue
Recommended for you
For overseas fund managers coming to Australia, a focus on platforms is critical for achieving growth, according to IMAP chair Toby Potter, flagging iCapital’s partnership with Netwealth as a firm which is succeeding in this goal.
Global investment firm Lazard Asset Management has appointed AllianceBernstein’s global head of investment as chief executive, as current CEO Evan Russo prepares to step down after almost two decades at the firm.
Ausbil has launched its first active ETF in response to adviser demand for a dual-access product offering regular monthly income.
ETF providers are considering the phase-out of bank hybrids in their product development plans with billions of fixed income assets set to seek a new home in the coming years.
