Invest
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on safeguarding investments against market whims.
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on safeguarding investments against market whims.
AMP's Shane Oliver, renowned for his industry expertise, emphasizes the lack of predictability in investment markets, cautioning investors about the risks of short-term distractions.
Dr Oliver remarked, “It would be nice if the investment world was neat and predictable, but it’s well known for sucking investors in during good times and spitting them out during bad times.” His insights spotlight the increased difficulty in navigating the investment terrain due to an overwhelming influx of information and opinion.
He advocates for steadiness in the face of volatility, encouraging investors to look past the turbulence. “Investment markets go through cyclical swings... The trouble is that cycles can throw investors off a well thought out investment strategy that aims to take advantage of the power of compounding longer-term returns. But cycles also create opportunities,” Dr Oliver explains, referencing the recent market downturn that was later followed by a robust rebound.
Dr Oliver urges a long-term view, highlighting the pitfalls of short-term forecasting amid uncertainties. He prioritises the need for diversification and straightforwardness, emphasizing a well-balanced portfolio and a focus on overarching asset allocation. “Don’t put all your eggs in one basket. Having a well-diversified portfolio will provide a much smoother ride,” he acknowledges, also advising skeptics to avoid intricate and obtuse investment options laden with obscure valuations.
The significance of professional guidance and steering clear of the herd mentality is also underscored by Dr Oliver, especially during moments when the market reaches its zeniths or nadirs.
Echoing this perspective, Jamie Nicol from DNR Capital identifies the silver linings in the current climate of uncertainty, perceiving them as chances to acquire valuable stocks at appealing prices. Nicol recognizes the immediate hazards of a high-interest-rate climate but advocates for a foresighted stance.
“Investors should look through the short term and think about what these companies are going to look like in three to five years,” Nicol suggests, identifying promising investments, especially in undervalued businesses with resilient outlooks and cyclical stocks that will likely fare well when interest rates reach their zenith.
Nicol concludes with a hopeful note for investors willing to peer beyond the current cycle, highlighting potential opportunities in the dynamic environment. With the guidance of these experts, investors can navigate market unpredictability without the need for a 'crystal ball.'
RELATED ARTICLES
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
Economy
Fed decision set to pressure emerging market central banks to hike rates
The Federal Reserve's expected decision to maintain US interest rates at a two-decade high at its sixth consecutive meeting on Wednesday is set to put pressure on emerging market central banks to hike ...Read more
Economy
Fed keeps rates steady, signals higher for longer amid elevated inflation
The Federal Reserve kept interest rates unchanged at its May meeting and signaled that rates are likely to stay higher for longer given elevated inflation in the first quarter, while also announcing a ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Co-ops and mutuals boost revenue to $43.2 billion despite economic challenges
Australia's top 100 co-operative and mutual businesses have posted a record performance in the 2023 financial year, growing total revenue by 16.1 percent to $43.2 billion. Read more
Economy
Fed decision set to pressure emerging market central banks to hike rates
The Federal Reserve's expected decision to maintain US interest rates at a two-decade high at its sixth consecutive meeting on Wednesday is set to put pressure on emerging market central banks to hike ...Read more
Economy
Fed keeps rates steady, signals higher for longer amid elevated inflation
The Federal Reserve kept interest rates unchanged at its May meeting and signaled that rates are likely to stay higher for longer given elevated inflation in the first quarter, while also announcing a ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
