Market update Dr Susan Gosling
The recent market volatility is, understandably, making investors nervous and they’re probably concerned this volatility resembles the correction we had mid-way through 2011.
While we’re expecting short-term volatility, we’re confident in the medium-term return potential in equities.
While there are clearly difficult macro uncertainties, we’re increasing our focus on companies which, we believe, have the fundamental strengths to perform well, even in this environment.
And our investment managers have been avoiding some of the troubled areas and are actively finding the opportunities that will underpin long-term returns for clients.
Current markets and our investment approach
Our approach to investing is supported by what sounds like a simple notion; share prices follow earnings which follow economic growth.
However, what happens to economic growth, how that translates into company earnings and the value the market places on those earnings, is far from straightforward.
Today there are real worries about the course of global economic growth and this creates uncertainty about future company earnings streams, which is why we’re seeing such volatility in markets.
We understand this, but continue to emphasise the importance of investing in fundamentally sound companies to deliver adequate real returns for investors.
For more information, please contact your financial adviser.
Important information
This information has been provided by MLC Investments, ABN 30 002 641 661 a member of the National Australia Bank group of companies, 105-153 Miller Street, North Sydney 2060. This material was prepared for advisers only. This communication contains general information and may constitute general advice. Any advice in this communication has been prepared without taking account of individual objectives, financial situation or needs. It should not be relied upon as a substitute for financial or other specialist advice. Before making any decisions on the basis of this communication, you should consider the appropriateness of its content having regard to your particular investment objectives, financial situation or individual needs.
