Noisy volatile markets, what’s causing them and how do investors avoid being adversely affected?
The increase in global volatility in August prompted Paul Moore CIO at PM Capital to communicate his thoughts on what is currently influencing market dynamics and feeding the global volatility spike. Moore says the collapse in commodity prices has reinforced his view that China’s transition away from fixed asset investment would probably be more painful than most expected. “What was most interesting was that all asset classes saw an initial decline in prices of similar magnitude. This was no doubt in part due to the fact that we truly are a global market place today. And the size of the stampeding herd is so much bigger and more instantaneous.” Moore adds that regulators have unwittingly reduced liquidity, which is now dominated by index funds, ETFs and computer driven traders. The result is a compounding effect on the tendency for all short- term investors to act the same. In this video Moore provides his views on this volatility and how he is investing against this backdrop. To watch the video click the (VIEW LINK)
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