Share market volatility - Trump and trade war risks
28 March 2018
Angus Stevenson, an Advisor of Boyce Financial Services in our Wagga office recently uploaded the following article from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital.
After the calm of 2017, 2018 is proving to be anything but with shares falling in February on worries about US inflation, only to rebound and then fall again with markets back to or below their February low, notwithstanding a nice US bounce overnight. From their highs in January to their lows in the last few days, US and Eurozone shares have fallen 10%, Japanese shares are down 15% (not helped by a rise in the Yen), Chinese shares have fallen 12% and Australian shares have fallen 6%. So what’s driving the weakness and what should investors do?
n his most recent “Oliver’s Insight” column, AMP Capital’s Dr Shane Oliver looks at worries about the Fed, trade wars and President Trump increasing risk andthe fact that these are unlikely to drive a major bear market; The key issue being whether the US is about to enter a recession which AMP Capital believe to not be imminent. Dr Oliver also discusses that the key for investing being to stick to a long-term strategy and turn down the noise.