International share markets fall as uncertainty spikes
Heightened concerns over the growth outlook for China proved to be the trigger for a collapse in international share markets during the September quarter. Financial markets were trading at stretched valuations, following years of near-zero interest rates and quantitative easing, making the corrections sharper than they may otherwise have been. The magnitude of share price changes — as measured by the CBOE Volatility
Index (vix index), which is also commonly called the ‘fear index’, spiked to the highest level since 2011.
Until then, share market volatility had been at low levels since the global financial crisis, so we expect an increase to more normal levels over the medium term. We anticipate that market gyrations may continue in the 10 short term, however, for long-term 5 investors this weakness presents attractive investment opportunities.
You’ll achieve the most benefit by working with your financial advisor when you build a long-term association with them, not unlike your association with your financial investments. That’s because we guide you across the expected changes ahead.