Hold firm through volatility: Fiducian

funds-management/investment/Fiducian/

15 February 2016
| By Nicholas |
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Investors should stay true to their investment strategies despite market volatility, if they want to secure medium to long-term returns, Fiducian believes.

In its latest market insight, the investment manager reported that the heightened level of volatility seen since the start of the year had significantly improved what it believed were already fair market valuations.

"Across the world, monetary policy remains essentially expansionary, with ‘quantitative easing' very much in place in Europe, Japan and other economies, while interest rates almost everywhere remain at all-time historical lows," the investments manager said.

"On top of this, fiscal policy is also becoming more expansionary after a lengthy period of attempts to rein-in government deficits, especially in Europe and even the US and China.

"All of these programs are aimed at boosting investment and even consumer spending and this is very likely to be effective in time.

"As and when it becomes clear that such policies and programs are lifting growth, we are likely to see stock markets reap the benefit and return to an upwards trend.

"We continue to recommend that investors maintain their investment strategies and hold any positions they may have in share markets with the aim of achieving solid returns over the medium to longer-term."

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