Making sense of market movements
Being diversified, selective and not herding together with the crowd is crucial to investment outcomes in the short to medium term
THE start of August has been a tumultuous one for markets, opening with big sell-offs followed by equally large bouncebacks. This is in contrast to the first half of 2024, where economic data was generally resilient with inflation trending down, albeit with some volatility.
Global equities were on a nice run in the first six months, rising more than 10 per cent. The US share market had its best first half-year since 1900 but has now nearly gone one full round – rising nearly 4 per cent in the first half of July, before falling more than 8 per cent by early August.
While these developments might trigger many investors to rethink getting into the market, the truth is, as with many things, the devil is in the details. If one looks underneath the hood, it is possible to find good long-term opportunities.
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