February 2018 – Market Commentary
You could be forgiven for thinking the recent minor correction to the investment markets were going to be a lot worse than they ended up being. Emotive headlines of the last week included ‘Global Share Markets Plummet’ and ‘Aussie Share Market Bloodbath’.
These were then followed the next day by ‘Wall Street’s Stunning Recovery’ and ‘Market Claws back $17bn’. The point is it’s easy to get caught up in the attention grabbing headlines the media give us. Of course, at Endorphin, we continue to focus on long-term opportunities, and recommend staying the course, rather than focusing on short-term volatility.
Dan Kemp, head of Morningstar Investment Management in the UK, reminds investors to maintain a fundamentals-driven approach and try to drown out the noise.
“Periods of market turbulence can be especially dangerous for investors as they tend to elicit an emotional response and heighten the behavioural biases to which we are all prone,” he says.
Suggesting three ways to help overcome harmful biases, Kemp says investors should:
1) Remember that investment is a long-term pursuit.
2) Try to avoid the sensational headlines that can lure you into action.
3) Remember that if you are going to look for opportunities, ensure you have a robust framework for setting the real value of assets.
JP Morgan’s chief market strategist for Asia Pacific, Tai Hui, believes the market pullback was entirely foreseeable and views it as “a healthy correction, which we believe is driven by investors taking profit on a strong 2017”.
“Given that our positive view on underlying fundamentals remains unchanged, that we see little risk of recession, and that earnings expectations remain strong, we would view this as a buying opportunity,” Hui says.
How Endorphin Wealth Management can help
We continue to monitor our client’s investments on a daily basis to continually search for opportunities and make adjustments to their portfolios as necessary. We are especially looking for investment opportunities that may have been caught up in the storm and perhaps oversold.
The advice we provide at Endorphin is always in our client’s best interests because we’re able to access a range of products from different providers that can be tailored to our client’s needs. We utilise 4 research providers to confirm our investment decisions and to monitor the valuations of the underlying companies in our clients’ portfolios.
Comprehensive analytics and research
We invest a great deal of time and effort researching the best investment strategies for our clients and have developed a number of systems to manage and track the marketplace.
The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your goals. We want, our clients to get on with enjoying their life rather than worrying about money.
Phillip Richards and Robert Rich
Endorphin Wealth Management
Phillip Richards is a qualified Financial Advisor with over ten years’ experience. Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.
Robert Rich is a qualified Financial Advisor with over nine years of personal investment experience. Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.
This information is general in nature and does not take your personal situation into account.
Contact Us for quality financial advice so you can feel good about your future.