Investing in volatile markets

In this week’s special report, Clime’s CIO, John Abernethy shares his latest 'Letter to Investors'. In his last letter, investors were foretold of an expected sideways movement in the Australian equity market. What is hidden within the long term sideways movement is extreme short term volatility. This volatility is expected to continue through the remainder of this year and for some time to come. At Clime, we believe increased volatility needs to be accessed rather than avoided. John states, “...now is not the time for investors to default to cash and condemn themselves to sub-optimal returns. Rather, it is a time to acknowledge an environment dominated by price volatility. Investors can then appreciate the risks and challenges of the markets to access the opportunities created.” In his overview, John highlights 3 valuable considerations for investors: Which key factors investors should expect in the coming period; our views for a major correction in property and equity markets; and therefore the overall value of your superannuation savings; and how investors might position themselves to take advantage of short term volatility? (VIEW LINK)