A Little Bit More

A Little Bit More

A Little Bit More 635 367 AMA Team

Screen_Shot_2013_06_08_at_12.12.23_PMWelcome to another week of Money Matters! For our readers in China we hope you’re enjoying the Dragon Boat Festival as well as a shortened work week. Austen Morris Associates is closed from Monday 10th through Wednesday 12th June 2013 as we observe this Chinese holiday. However, as the global markets will be open all week as usual, we’ll continue to monitor them. Right now let’s have a look at the market movements from last week.
It was a more volatile week than usual with most global indices ending the week down a few percentage points. Along with the concerns about when government stimulus measures will end, which has been going on for several weeks now, there were also a few additional events that added to the concerns. Included in that list of events are the protests in Turkey which has led to about a 15% drop in their markets over the past week. We’ve also seen poor growth reports out of Australia which hasn’t helped the weak manufacturing and low commodity demand seen over the recent months. And last, but not least, there have been the lowered growth targets for many of the European economies. These events were not caused by one another but none the less were viewed together, and combined to help add more volatility to the global markets in general. With that said, we also saw some resilience in certain sectors such as healthcare, telecom, and consumer cyclicals, as well as continued buying of equities which have all lead to a volatile up and down pattern.
Screen_Shot_2013_06_08_at_12.42.12_PMDespite this back and forth which has been going on for some time now, the overall positive trend, seen since the outset of 2013 has been winning the battle. And although the recent two weeks have reversed that trend, it’s still a bit early to gauge where the markets will go. We’ve previously mentioned that for some investors, some profit taking or rebalancing may be beneficial, but once again, we ask that you do exercise some caution and ensure that you don’t let the short term get in the way of the longer term picture. Investors who are trying to jump in and out of the markets with current volatility will be taking on a lot of timing risk, and historically, investors who stick with their longer term strategies usually outperform investors who try to time the markets! So with that in mind we continue to encourage investors to “sit tight” and maintain a balanced portfolio and stick to their longer term strategies. If you are interested however in making some moves to profit take, or rebalance for other good buying opportunities, be sure to speak to your Adviser and discuss the best strategies to do so based on current market conditions.
Screen_Shot_2013_06_08_at_12.44.24_PMFor Austen Morris Associates’ investors – talk with your advisor about any repositioning to take advantage of markets at this time. For more information about Austen Morris Associates please visit our website.
Darren Cox
Co-Head of Portfolio Management
Austen Morris Associates Wealth Management & Investment Team
www.austenmorris.com

AMA Client Testimonials