Sensible investors can survive crises: Lonsec

lonsec investors crisis financial markets research house fund managers Dow Jones GFC global financial crisis

12 October 2018
| By Hannah Wootton |
image
image
expand image

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.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 4 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 2 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 5 hours ago