Investors look for reassurance as market volatility causes anxiety
Times News Service
MUSCAT: A leading financial adviser has revealed how investors can best protect their investment portfolio during the current period of volatility and uncertainty.
Stefan Terry, Senior Partner at financial services and advisory firm, Holborn Assets, believes that a robust and diversified investment portfolio invested in a range of geographic locations and industry sectors as well as being spread across the major asset classes — equities, bonds, commodities and property — allows clients to reap the benefits during periods of growth such as 2017, while also mitigates against the risks caused by uncertainty and downturns.
The Dubai based adviser revealed that the majority of his clients’ recent questions are based on what impact market volatility and downturns would have on their investments, but he believes there are several very compelling reasons why most investors will be largely unaffected.
He said: “2017 was a very stable year for markets around the globe, which resulted in strong returns for investors where a return above 20 per cent was not uncommon. However, we have now seen a certain amount of volatility return due to widespread uncertainty, mainly caused by media speculation that the current market high will result in a downturn, as well as on political factors like possible interest rate hikes, Brexit negotiation implications and the uncertainty over Donald Trump’s actions.
“Understandably this has resulted in many of our clients asking a lot of questions about how their investments will be affected and what they can do about it. We understand just how important people’s investments are and this is a question we are very happy to answer as there are several very good reasons not to panic,” he added.
“Firstly, while some analysts are predicting a downturn there are also many who are predicting the opposite. Second, it is important to remember that mid to long term investments are not get rich quick schemes, they are managed portfolios built to make very healthy returns during the good times and to be robust enough during the bad times to ensure the good far outweighs the bad.”
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