Riding Out the Market Storm
New year, same old story. Equity markets began 2016 in much the same way they ended 2015. Plagued by the same cocktail of woes that began to pressure markets in the middle of last year, major global stock indexes, including the S&P 500® and MSCI World Indexes, had their worst week in more than four years.
Aviva Investors offers brief but timely thoughts on the volatility. Among the key points:
The pessimism gripping equities and other risk assets appears overdone.
Be wary of siren calls from several prominent investors drawing comparisons with the onset of the 2008 financial crisis.
There is long-term value in stocks for patient investors prepared to do their research and ride out the market storm. Still, caution is the watchword as downside risks are mounting.