Investors urged to be cautious after Iran attack
Investors should remain ‘cautious and consistent’ as Iran retaliates against the US for killing Iranian military general Qasem Soleimani, deVere Group’s chief executive Nigel Green says.
Green said investors had to monitor the US/Iran situation, what had led to it, and where it might play out, and that it was best to avoid quick buy/sells and trust the long-term trend in the stock market.
“They need to ensure that their portfolios are properly diversified by geography, industrial sector and asset class in order to manage risk, to navigate the increasing volatility and also to take advantage of potential opportunities when they arise,” Green said.
“If their portfolio is indeed well-diversified, for the time being at least I would urge investors to remain cautious and consistent.
“If portfolios are not properly diversified, recent events could serve as a wake-up call to reposition.”
Global financial markets plummeted after news Iran launched missile strikes at two US bases in Iraq.
“Geopolitical tensions are certainly heightening, and this always creates uncertainty – something which markets typically loathe as it becomes more difficult to know where things are headed. In other words, they can’t price uncertainty,” Green said.
“In many regards, the US/Iran situation has now surpassed the US/China trade war as the biggest risk to financial markets. This has been reflected in the current volatility.”
AUTHOR
Chris Dastoor
Recommended for you
Ten Cap has announced it will launch its first active ETF on the ASX later this month, expanding retail access to its flagship Australian equities strategy.
Flows into cash and fixed income ETFs rose by 46 per cent in October with investors particularly demonstrating a preference for Australian credit ETFs as they move away from AT1 bank hybrids.
Having identified Australia as a growth market, J.P. Morgan Asset Management has collaborated with Betashares to offer two multi-asset managed portfolios on its Direct platform, the first funds on the platform from an external manager.
First Sentier has announced it will transition the Stewart Investors investment management responsibilities to its affiliate investment team in light of three senior portfolio manager exits.
