AMP Capital oversees a fund value of $141 billion, and its global investment strategist, Shane Oliver, says equities will still pay off to those who stay the course
Equities are getting pummeled again across the board today in Asia. And the much of it has to do with the recent rise in bond yields. It was something that came up last week as well, and we're starting to see the more ugly parts of it surface up right now.
But AMP Capital says that "the pullback has further to go as investors adjust to more Fed tightening than currently assumed", and that it is "likely to be just an overdue correction, with say a 10 percent or so fall, rather than a severe bear market".
However, Oliver believes that equity returns will remain positive this year - despite higher volatility.
Bloomberg's MSCI All-World index - which provides a gauge on global equity markets - is down by more than 3% since the peak this year, in one of its steepest falls in recent years.
This could just be the start for equities and risk sentiment I fear. But hey, maybe it won't be more than just a fumble, eh? ;P
Congratulations to the Eagles, btw! Those last two minutes were mad.