Volatility no reason to sell out of equities
Medium-to-long-term equities investors should stay fully invested despite the markets remaining volatile for some time to come, according to Standard and Poor’s.
In its Tactical Asset Allocation Report 2008 it recommends that only those investors with the “shortest time horizon” should consider selling out of their equities portfolios.
“For medium-to-long-term investors, especially ones who are contributing regularly to their savings, dollar-cost averaging smooths the entry price in volatile times.
“Over the medium-to-long term, economies will recover and the shares of strong companies will once again start to look like very good value,” it said.
For “new money going into investments and super”, the report recommended avoiding domestic and global small-company funds as well as domestic and global listed property.
“S&P continues to be tactically underweight to both Australian and global equities, and remains out of small cap stocks, which tend to suffer first at any signs of an economic slowdown,” it said.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
