Sensible investors can survive crises: Lonsec
Amid whispers of a crisis in the financial markets, Lonsec has suggested that while a crisis can have a severe impact on the markets, investors who avoid herd-like selling can often protect themselves.
Positively, the research house also said that for active and contrarian fund managers, the disruption surrounding crises could present opportunities. It warned, however, against trying to time the market.
Looking at the impact on financial markets of eight major political and market crises over the last 20 years, as shown in the chart below, the Dow Jones had rebounded by the 150-day mark of each of the events bar the Global Financial Crisis.
In many instances, it had even produced gains that exceeded the initial loss.
AUTHOR
Hannah Wootton
Recommended for you
The Reserve Bank of Australia's latest interest rate announcement has left punters disheartened on Melbourne Cup Day.
Equity Trustees has been selected as the responsible entity for two new funds, one from Coller Capital focused on private equity and a second investing in fixed income from FIIG Securities.
Funds managers are being urged by financial advisers to improve their “outdated” education and communication about alternative funds as they actively target them towards retail clients.
GAM Investments has appointed Eric Finnell as its managing director for Australia after his predecessor left to take up the CEO role at Global X.
