AUI chief executive David Bryant said financial markets have been over-reacting to “market noise” in recent weeks, rather than hard facts, warning investors to examine the macro picture.
“While the markets have shown volatility because of a reaction to commentary about expected changes in global growth, the reality is that the underlying economic trends are still good,” he says.
“The IMF did lower its growth forecast from 4 per cent to 3.8 per cent for next year, but it’s still up on the 2014 forecast of 3.3 per cent.
“China is growing by 7.4 per cent and is expected to grow by 7.1 per cent next year, despite negative commentary.
“Indeed, I believe it could be even higher than forecast because the Chinese government is likely to provide any extra stimulus necessary.”
Mr Bryant said that there are still very positive signs for investors emanating from the US, supported by a falling unemployment rate.
“With US reporting season commencing this week, hopefully some of the noise will be put aside and investors will start to refocus on the facts,” he added.
