Market Turmoil: why did it happen and what’s next?
By Frank Jasper, Chief Investment Officer, 09 November, 2018
Expert & Indepth
October was a volatile month for global share markets. While falling prices were the dominant theme, there were also days where prices rose dramatically. Volatility like this is confusing and can be downright scary for some investors.
Read on for insight into what was behind this market turmoil, what might come next and some thoughts on how we tend to think about bouts of volatility like we have experienced.
It’s always about the economy.
The economic cycle is an important driver of company profits, and profits ultimately drive the share market. This doesn’t mean the economy leads the market but that market participants obsess about what’s happening in the economy and buy or sell shares accordingly …