Investors should be selective about global sell-off
This week’s global sell-off, which saw European and Asian indices drop, should serve as a reality check for investors, according to chief executive and founder of deVere Group’s Nigel Green.
Tuesday saw a 2.3% drop of the pan-European Stoxx 600 index and 2.4% drop of London’s FTSE 100, which followed a 2% drop of Hong Kong’s Hang Seng and 3% drop of Japan’s Nikkei 225 index.
Green said the world’s economy was at a point of major readjustment following an unprecedented economic shock and this was fuelling concerns that rising inflation will trigger central banks to tighten monetary policy.
“It is to be expected that there would be a jump in prices and supply shortages, in goods like chips and some commodities, as economies re-open and pent-up demand is unleashed by households, businesses and entire industries,” Green said.
“It is this scenario that is rattling markets and triggering a global sell-off.”
Green added that although tech shares were bearing the brunt of the sell-off, this would also be used as an opportunity.
“Savvy investors will be drawn to the massive growth that tech offers and this sell-off will used as a buying opportunity. Nobody seriously believes the future isn’t online,” he said.
Therefore investors should be wise to be “selective” about the sell-off.
“With some of the heat being taken out of the markets, with some stocks way too high, they are likely to – perhaps more judiciously than before – move to capitalise on this dip. Of course, I don’t have a crystal ball, but history shows that stockmarkets typically rise over the longer-term. Therefore, in the near future, I predict many investors will be seeking out the buying opportunities that exist,” he concluded.
AUTHOR
Oksana Patron
Recommended for you
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
GQG Partners has announced net flows were down 28 per cent in the first half of 2025, with redemption pressure particularly hitting Australia.
