Citigroup looks beyond Iraq to long term
CitigroupAsset Managementhas warned financial planners, in light of the war in Iraq and a continued global downturn, of the importance of highlighting to clients the long-term nature of investing across global markets.
Citigroup head of Australian equity strategy Brian Parker says that clients have traditionally “bailed out” of the markets close to the bottom of the cycle only to jump back in close to the top.
Parker says financial planners should be telling clients the stories of history to defend their business, as to follow the peaks of the cycle “could be one of the most dangerous things that could happen”.
However, he says, it is easier for financial planners with clients that had been in the market for 20 years because they have seen both ups and downs and know markets will recover.
“But if a client had put money into an allocated pension in 2000, then they have seen nothing but bad times in terms of the global portion of their investment.”
Parker says the end of the war on Iraq will not result in a major share market rally because there is no “scope for a positive surprise”.
And while the war may have increased volatility and uncertainty in the short-term, continued slow growth due to structural problems in the US and globally still remains.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
