Obviously a pretty difficult investment environment at the moment. Markets tanking again overnight and following on in Australia this morning. Watching Billabong drop around 25% this morning demonstrates the benefits of diversification…I’d hate to be an adviser with an overweight Billabong position in my client’s portfolio. Anyway I digress. Volatility in the sharemarkets will continue for many …
Category Archive: Sovereign Crisis
pub-5731955080761916
Aug 08
So much for the downgrade…it’s all about growth expectations
So the US has just had its first trading day since S&P downgraded US debt to AA. A downgrade in anyone’s debt would normally result in an increase in yields as the debt is viewed as riskier so investors expect a higher yield to be compensated for that risk. What happened in the US overnight …
pub-5731955080761916
Aug 08
Market Panic…dodgy thoughts
Many many retail investors are panicking, withdrawing their funds and shifting into lower risk investments (mostly cash). Advisers and head office staff are looking for communications to calm investors down but unfortunately the current market situation is that there isn’t necessarily a right answer. Whilst I don’t believe the S&P downgrade of US debt is …
pub-5731955080761916