Investors are set to concentrate on managing risk in the New Year while still looking for higher returns as markets are likely to remain unstable, according to Aberdeen Asset Management.
“Investors are naturally nervous after five years of volatility,” Aberdeen Asset Management managing director Brett Jolie told InvestorDaily.
“While the search for yield will continue, there will also be a greater focus on volatility management, as opposed to outright capital growth.”
The asset manager foresees tough global conditions continuing, with the market subject to short, sharp adjustments.
Inconsistent growth in the United States and China will hinder the growth of global investment markets and are likely to keep the share market volatile, he said.
However, Mr Jolie has said investors should still look to riskier investment options in order to take advantage of market conditions.
“Understandably, global sentiment remains weak and investors remain on the sidelines, holding cash despite the poor returns on offer,” Mr Jolie said.
“Cash yields are lower than 12 months ago and investors will need to invest elsewhere if they are to generate a return.
“Investors need to ensure their long-term goals are being achieved, and in most instances, cash will not deliver.”
