Eurozone investment market volatility was legendary in the 2010 through 2012 period. Lessons learned from that experience (or series of events) are benefiting subsequent decision-making.
The application of those lessons beneficially impact management of volatility arising in other areas, including geographic, geopolitical, financial and economic.
Welcome to the EuroZone theme park!
In 2011, you earned your first stripes by surviving the Grecian tumbler –
…. then you were off on the Italian Spin ride!
(Making it through this adventure, may lead you to the French flair ride –
…. but watch this space: they may be reluctant to participate! Don’t despair –
…. other countries are seeking to contribute to the expo of extreme rides as well.)
Not wanting to be flippant nor overly cynical, there were constructive observations that were able to be made. Comparisons drawn and experiences from this event have guided strategies for subsequent volatility in market valuations and investor sentiment. This was Eurozone investment market volatility at its peak!
There are numerous cross-relationships when you look at Global business and financial markets. International companies trade in several economic zones – and borrow money locally from the financial sector to finance their activity. Banks across the globe engage in financial transactions that can consequentially cause pain when any one region(s) comes under stress. This leads to the question – Where are the safe havens in this environment?
Firstly, we need to consider what constitutes a ‘safe haven’. Is it somewhere that means the nominal value of the assets doesn’t change? It may be an income generative asset that continues whilst the asset value changes at a slower pace than others? Is it Gold…or Cash…or Bonds…or large cap equities (in which market region or industry sector?)…or Commodities? The answer will be different for each of us.
Dealing with market volatility
Continuum Financial Planners Pty Ltd suggests that the safe haven is your financial plan. That is the strategic advice document that focuses on –
- the assets and resources available to you,
- your risk aversion as an investor – and
- the timeframe that you have available to work with:
and the investment products that are selected for use to implement the strategy need to be –
- carefully selected and monitored as to
- consistent ‘true to label’ performance,
- whilst working to a personalised, professional wealth management strategy
that will give you the confidence to survive the ‘adventure park’ that is experienced in volatile times.
Linked to this post are some Related articles, containing –
- some charts and articles from elsewhere in our archives, as well as from
- other authors
that will hopefully add to your understanding and resolve in relation to the current market volatility.
Our experienced advisers regularly work with new clients, developing strategies and advice for their financial journey. We are usually open to accepting new clients and welcome referrals from our client group and other referrers.
To arrange an appointment with one of our experienced advisers to discuss your affairs –
- please phone our office on 07 3421 3456 – or
- at your convenience, use the linked Make A Booking facility,
Feel free to refer family, friends or colleagues to be introduced to our services.
Related articles:–
