Market downturn expected
A market downturn is being increasingly speculated by market analysts on the back of China's falling growth and the Greek debt crisis, according to a financial advisory firm.
deVere Group has urged investors to take precautions as possible market corrections could also be triggered by the eventual US rate rise.
Founder and chief executive, Nigel Green said there is growing concerns about China's indebted and slowing economy despite data showing China's situation is better than expected.
"Similarly, whilst there has been some progress in the Greek saga and the IMF [international monetary fund] is now calling for massive debt relief, many experts opine that the measures are simply masking the more fundamental issues which will take decades to resolve," he said.
Green noted that although it would be unlikely, a global recession would be possible if the US raise its interest rates excessively and China's growth fell further.
"In short, whilst we remain vigilant for clients on market corrections, I expect that although the next few months may well be volatile, there is plenty of upside potential too. The history of stock market investing proves, after all, that optimism pays," Green said.
Recommended for you
Almost 70 per cent of asset managers are planning to control costs via product rationalisation, according to a global survey by Northern Trust, as they seek to offer clients a best-in-class experience.
Fund managers should work collaboratively with data providers to minimise greenwashing risks in their products as a positive ESG score can be a “gamechanger” for a fund’s demand with advisers.
Asset manager Janus Henderson has made two acquisitions in the ETFs and emerging markets space as it takes strategic steps to meet client needs.
Self-reporting issues to ASIC could lead to a reduced charge for a fund manager but it may not exempt them from enforcement action altogether, according to ASIC chair Joe Longo.
