A recent paper from Lonsec Research: “Volatility On The Rise“ highlights the current view held by Providence, namely;
- Heightened volatility within investment markets, and
- Divergence amongst major economies.
The implications of this are as follows;
- Ensure solid diversification across asset classes and styles,
- Prefer active management over passive,
- Watch out for market disruption in credit regarding liquidity,
- Asset class returns are likely to be lower than those pre-GFC.
A cautious stance is warranted.