POWERED BY MOMENTUM MEDIA
Current downturn will not match 2008: Malvey
The current market downturn and the instability impacting the US and Europe will not be as bad as the 2008 financial crisis, according to BNY Mellon Asset Management chief global market strategist, Jack Malvey.
Malvey has predicted the worst case confronting the US was a mild brief recession, but added "we are more likely to experience a low-growth recession".
"While the worst of the current downdraft likely is behind us, it is difficult to determine the exact market bottom for these types of corrections," he said.
Malvey characterised the current environment as "an aftershock to the Great Recession" and noted that anxiety about a second economic dip after a primary recession had long been common.
"Typically, such concerns and negative market reaction about a possible secondary recession tend to dissipate within three months as a result of negative news exhaustion, markets finding an equilibrium state, and the emergence of attractive equities and credit debt after their decline to discounted valuations," he said.
Nonetheless, Malvey said the US was facing a long journey with difficult decisions needing to be made in coming years "along the road to fiscal rectitude".
AUTHOR
Mike Taylor
Recommended for you
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
