• Does volatility present an opportunity to buy quality businesses at attractive prices? Read our latest global whitepaper here

Whitepaper: The Marvelous Mr. Market

SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • Over the last four years global equities have effectively drifted sideways
  • As stock prices fall, the probability of higher future investment returns increases
  • How active funds can profit in volatile times
SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • Over the last four years global equities have effectively drifted sideways
  • As stock prices fall, the probability of higher future investment returns increases
  • How active funds can profit in volatile times

Whitepaper: The Marvelous Mr. Market

Over the last four years, global equities have delivered a real return of approximately zero… True or false?

Before you scream “false,” our analysis, presented in our latest Whitepaper, shows that global equity returns as measured by the MSCI World Net Total Return Index have barely beaten inflation over this period if you discount the one-time US corporate tax cut. At the same time, S&P 500 pre-tax earnings have increased by 16 per cent.

This means global equities have become cheaper and arguably less risky, creating buying opportunities in strong global brands, which are now trading at attractive prices.

Our Whitepaper also looks at how markets are becoming increasingly erratic, leading to unusual rotations in global equity markets. This, too, is providing new buying opportunities.

It also emphasises the importance of a thoughtful and disciplined investment process during periods of volatility, and the need for investors to see volatile times as an opportunity and not as a threat.

Unlock to Read More Use the form on this page to access this exclusive content.

 

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Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.