After another turbulent week in global markets, Schroders’ Head of UK & European Equities, Rory Bateman, points out that the recent selloff could represent a buying opportunity for long-term investors.
After another turbulent week in global markets, Schroders’ Head of UK & European Equities, Rory Bateman, points out that the recent selloff could represent a buying opportunity for long-term investors.
Higher levels of volatility have been a feature of stockmarkets for a number of weeks now. There are several reasons for this including disappointments over Chinese growth, currency moves, and oil price weakness. In our view, what we have seen is very much a market correction as opposed to a serious deterioration in the global economic environment.
These periods of sharp market moves understandably make headline news. However, it is important to remember firstly that equities can be a volatile asset class, and secondly that equity investing is a long-term business.
For active managers taking a long-term view, such as ourselves, volatility can give rise to opportunities. In times of fear, markets tend to sell off across the board. The result is that solid businesses with good prospects for growth trade at lower valuations than they did previously, offering an opportunity for investors.
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