The continuing macro headwinds of the European debt crisis and the slowdown of China’s economy should prompt Australians to seek financial advice or lead investors to reconnect with their adviser, Financial Services Council (FSC) chief executive John Brogden said yesterday.
“There’s no doubt the markets are down and flat, but it’s a bit like when you’re sick – you don’t try to kill yourself, you go and see a doctor,” Brogden said.
“So when [investment] times are difficult, you go to see an expert and get advice [on] what opportunities there may be. Our hope is that in difficult times people do take advice. This is not the time to take a punt; this is the time to take professional advice.”
The December quarter Chief Investment Officer Investment Index, compiled by the FSC, found chief investment officers expected the investment environment to remain volatile for the next 12 months.
The index scored sentiment at 20, from 25 last December. The index is measured between -100 to 100, where 0 represents a neutral outlook.
Brogden said while the decrease was relatively minor, CIOs expected a similar environment for next year.
“They’re slightly more pessimistic. What’s clear is that 12 months ago they expressed concern over sovereign debt in Europe and unfortunately that picture has come true,” he said.
“Now as they look into 2012, they’re expressing concerns about potential contagion risks from that debt crisis into China. There’s an enormous amount riding on the European policy makers getting some stability in the very short term, [but] no-one’s expecting a significant upturn in the next 12 months.”
Priorities for CIOs in 2012 would therefore be to continue to monitor volatility and keeping an eye on inflation and China’s economy, he said.
