Another week of falls in equity markets, with the MSCI All-Country World Index and the ASX200 both having now fallen 20% from their highs last year. This marks the traditional definition of a bear market. These are the times that make or break an investor’s performance, so in that vein, this week’s wires encourage investors to take a long-term view and make sure their research is thorough.

1) Government bonds in Japan and Europe now have negative yields, equity prices are falling, it’s a scary climate out there. Clime Asset Management has a clear message for investors: “Don’t panic – Accumulate equities in weakness.” (VIEW LINK)

2) Traditional wisdom tells us that equities will outperform in the long-term, but this comes at a cost – volatility. Fidelity International, the former home of investment legend Peter Lynch, give us 10 things to remind ourselves when markets fall. (VIEW LINK)

3) The team at Jamieson Coote Bonds have been saying for some time that the US Fed would be forced to abandon their rate-hike cycle. Janet Yellen’s comments this week appear to have confirmed this. So where to for bond markets from here? (VIEW LINK)

In what is becoming a tradition, once again we’ve got a bonus wire for you this weekend. We recently sat down with Karl Siegling, Portfolio Manager at Cadence Capital to discuss the future for the energy and resources sector: (VIEW LINK)

I’d like to leave you this week with a quote from the father of value investing, Benjamin Graham, from his seminal book, The Intelligent Investor:

“The true investor scarcely ever is forced to sell his shares, and at all other times, he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book and no more. Thus, the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons’ mistakes of judgement.”


Good read!

James Marlay

A good selection Pat. The piece from Fidelity was an excellent and timely read.

Patrick Poke

Thanks James, it was a cracker!