How investors can weather the storm in volatile markets
Bear in mind these observations when it comes to managing your portfolio
Volatility is a given in the investment world, and in the past few months investors have been exposed to several events that sparked short-term volatility. There were irregularities around corporate finances, sovereign events such as the ANC elective conference, and concerns around rising inflation in the US. What can investors do in light of this volatility, and what should they bear in mind when it comes to managing their portfolios? Volatility is part of the process Higher inflation is a function of a healthy global economy and indicates global economic growth. As it stands, we are experiencing globally synchronised growth for the first time in four years — since the first quarter of 2014. Volatility provides professional investors with opportunities to access markets at lower prices. Market corrections, usually defined as a fall of up to 10% in a stock or index, can return expectations to normal levels. On the global front the growth story is expected to remain intact We anticip...
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