Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

Investors must 'buckle up' as stocks and bond markets send opposing messages

 

April 11, 2023 (Investorideas.com Newswire) Investors should brace for significant volatility in global markets this quarter, warns the CEO and founder of one of the world's largest independent financial advisory, asset management and fintech organizations.

The warning from deVere Group's Nigel Green comes as markets tread water ahead of a week of key economic data, including the latest inflation reports for Germany and the US, providing more indications on the global interest rate path. The International Monetary Fund (IMF) will also release its latest outlook for the world economy on Tuesday.

He says: "Bond markets and stock markets are not singing the same tune currently. 

"Bonds are suggesting a long and/or deep recession. There's a growing worry that inflation is more stubborn than expected and this has triggered the inverted yield curve in bond markets. Yields are inversely related to bond prices.

"This is typically the sign of a coming recession - an inverted yield curve has emerged roughly a year before nearly all recessions since 1960.

"On this basis, stocks look overpriced."

The deVere CEO continues: "However, despite a wobble with the recent banking crisis, stock markets are feeling pretty buoyant and appear now to be looking past short-term inflation squalls and are seeing the endgame of interest rate hikes on the horizon.

"Both cannot be right. This gaping disconnect between bonds and stocks suggests that investors should brace themselves for significant volatility this quarter in global financial markets."

The predicted volatility will create opportunities for those who are willing to take on some risk. "By staying disciplined and keeping a long-term perspective, investors often benefit from periods of market volatility; indeed, they can prove to be highly rewarding," says Nigel Green.

"We're potentially looking at some serious buying opportunities for those looking to enhance their portfolios at a discount."

Diversification will become an even more critical component of investment strategies in coming months, when heightened volatility is expected. By spreading investments across a range of different assets, sectors, and regions, investors can reduce risk, protect against market fluctuations, and take advantage of opportunities for growth.

"With bonds and stock markets delivering different messages about a possible recession, and its severity, investors should buckle up for a bumpy period.

"But, as ever, volatility can be used as a powerful strategy to build wealth in the long-term."

e: george@priorconsultancy.co.uk
t: +44 207 1220 925
Twitter: @PriorConsults

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More