Global markets turbulent on bank fears, investors eye buying opportunities
March 24, 2023 (Investorideas.com Newswire) Heightening volatility in major stock markets around the world, triggered by concerns of the global banking system, will be used by investors as a buying opportunity, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.
The observation from deVere Group’s Nigel Green come as US stock futures fell on Friday, the pan-European Stoxx 600 index was down 1.5% by mid-morning, following a mixed session in Asia-Pacific markets.
He says: “Deutsche Bank shares have dropped for a third consecutive day – they’re now down 13% – and have now lost more than a fifth of their value so far this month.
“The emergency rescue of Credit Suisse by UBS, in the wake of the collapse of the US based Silicon Valley Bank and Signature Banks, has triggered a wave of contagion fears among investors, which was further exacerbated by more monetary policy tightening from the US Federal Reserve on Wednesday and the Bank of England on Thursday.”
The deVere CEO continues: “The growing sense of unease about the global banking system is heightening volatility in stock markets around the world.
“Savvy investors will be using this turbulence as a buying opportunity because the current creeping fearful sentiment doesn’t just hit the banking sector, it becomes more generalised.
“This brings down the prices of other high-quality stocks and investors seize on this to top-up their portfolios at lower entry points.
“Clearly, they won’t want to miss out on some key opportunities, but they must also avoid the ‘buy everything’ mindset.”
Whilst inflation remains a major headwind, Nigel Green explains, investors should “remain alive to other metrics” in investment decision-making.
When costs are going up, investors should increasingly be looking at a company’s ability to maintain margin.
“Investors should be paying close attention to margin because it can indicate how well a company is managing costs and competing in its industry.
“It can also impact a corporation’s ability to invest in growth opportunities or pay dividends” to shareholders.
“A good fund manager will help investors seek out the opportunities and mitigate potential risks as and when they are presented to generate and build their wealth.”
The deVere CEO concludes: “As concerns about the stability of banks persist, we expect further and intensifying market volatility. This will be used, as it always is, by investors to bolster their investment portfolios.
“This can prove to be an extremely effective strategy, but advice should be sought from a quality fund manager.”
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