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.
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