Investors cautioned on ‘rocky’ start to 2024

The CEO of advisory and asset management firm, deVere Group, has warned investors to “buckle up” after markets kicked off 2024 with more volatile conditions.

This comes after China and Japan suffered major losses for the Asia-Pacific region last week, European stocks continued to look towards a mixed opening, and Wall Street stock indexes were down for another quarter leaving US futures largely unchanged.

“Global markets have been spooked since the start of 2024 and there’s little sign that volatility will be reduced any time soon amid uncertainty regarding central bank rate cuts,” chief executive, Nigel Green, said.

“Arguably, the main trigger currently is minutes of the of the U.S. Federal Reserve’s meeting in December showed interest rate cuts were possible this year, but they provided almost no definitive indication on when – of if even – that might happen.

“With the ongoing lack of clarity from major central banks, including the Fed, we would not be surprised to see markets falling into correction territory this quarter. As such, investors should buckle up for more turbulence.”

Green said it was important for investors to consider several strategies when entering and navigating the market to help stay afloat but also produce “wealth-creating opportunities”.

“Corrections help markets maintain a balance by preventing excessive speculation and unsustainable price increases. They provide an opportunity for overvalued assets to readjust to more reasonable levels,” he said.

“Investors use corrections as opportunities to reassess their portfolios, reallocate assets, and position themselves for potential future growth. Many see corrections as buying opportunities, especially if they believe the fundamentals of the assets remain strong.

“Those who pay attention to them often use them as signals to review and adjust their risk management strategies. It prompts them to ensure that their investment portfolios are well-diversified and aligned with their risk tolerance.”