News

Investors should prepare for market correction: deVere CEO

November 3, 2021 (Investorideas.com Newswire) Investors should brace themselves for a 10% market correction over the next month as they grapple to get a sense of the Federal Reserve’s thinking on interest rates, says deVere Group CEO Nigel Green.

The forecast from chief executive and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations comes as the Federal Reserve is widely expected to announce on Wednesday that it will start unwinding its $120 billion monthly bond purchases.

Mr Green says: “Whilst the Fed Chair Jay Powell will be talking about the tapering of the massive bond-buying program, the real story for the markets is how the Fed, the world’s de facto central bank, will talk about inflation.

“Inflation is running hotter and is becoming a bigger issue than most analysts previously expected.

“As such, investors will be trying to get a handle on how the Fed intends to fight the trend of higher prices by starting to raise interest rates.”

He continues: “It’s highly unlikely that the central bank will now use their previous phrase ‘transitory’ to describe the current price surges. Inflation appears to be stickier than they had expected.

“This means that they are likely to have to raise interest rates sooner and/or more aggressively.

“Therefore, markets are actively pricing in two or three hikes next year and this could lead to a 5 to 10% market adjustment over the next month.”

By their very nature, all markets are subject to bouts of volatility. How to manage this? It’s almost universally recognized that a well-diversified portfolio and a good fund manager will help investors capitalize on the opportunities that volatility brings and sidestep potential risks as and when they arise.

The deVere CEO concludes: “Central banks that began enormous emergency support to tackle the pandemic last year are now planning a turn in the other direction.

“A market correction will be seen by savvy investors as the first major step towards the likely return to normal monetary policy and they will be seeking out the inherent opportunities that will be presented.”

e: [email protected]
t: +44 207 1220 925
Twitter: @PriorConsults

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

Follow Us on StockTwits

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News