Why have we seen a return to volatility in sharemarkets?
In this video Shane Oliver looks at why we have seen a return to volatility in the last couple of weeks as investors become more nervous. Seasonality, investor sentiment and global forces are all driving forces to consider.
There are a range of factors as to why we've seen a recent return of volatility:
- The upwards trend in markets following their lows in February this year
- Seasonality; the period around September has a history of volatility
- Global drivers; the US Fed is continuing to debate raising interest rates and there are concerns the European Central Bank and the Bank of Japan have done all they can for monetary stimulus, all at a time when the world economy is still fragile.
Investors are now nervous again and this is reflected in a return to volatility in sharemarkets
About the author
Shane Oliver, Head of Investment Strategy and Economics and Chief Economist at AMP Capital is responsible for AMP Capital's diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.