GLOBAL - Stock markets will remain volatile until after the first anniversary of the terrorist attacks on the US, SG Asset Management predicts.
SGAM chief executive Nicola Horlick believes a sustained upturn in the market is some way off and will be heavily dictated by investor confidence.
She explained: “The first anniversary of September 11 will weigh heavily on the market until early October. Until confidence in the UK picks up we are all rather stuck.”
Horlick believes although economic fundamentals remain positive, threats of war between India and Pakistan and the US and Iraq, coupled with a lack of confidence in US corporate accounting have forced markets down.
State Street Global Advisors, though, is more bullish and is confident that the market will recover enough to show a positive return this year.
It points out that since 1926 there have only been two periods with three years of consecutive losses – 1929 -1932 and 1939 -1941. State Street’s market commentary adds: “It is important to remember the market has a tendency to turn just as confidence is hitting its nadir and capitulation reaches its heights.
“While circumstances might appear dire, we have been here before and not only survived, but thrived.”
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