Lonsec Research Supports Current Providence View

recent paper from Lonsec Research: “Volatility On The Rise highlights the current view held by Providence, namely;

  1. Heightened volatility within investment markets, and
  2. 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.