Global market sell-off: review portfolios and look out for opportunities

Nigel Green

As the global stock market sell-off spreads across the globe, investors should ensure their portfolios are properly diversified and look out for buying opportunities.

This is the message from Nigel Green, CEO and founder of deVere Group.

His comments come as the U.S. Dow Jones fell 830 points, the UK’s FTSE is in market correction territory hitting a six-month low, European markets hit a 20-month low, and in Asia the Nikkei fell by 4 per cent, amongst other major indices also falling.

Mr Green notes: “There’s a sea of red across all major indices worldwide as global markets hit an 8-month low, following Wall Street’s worst day in months on Wednesday, with fresh losses expected today (Thursday).

“This major sell-off would not have taken most investors by total surprise. With rising interest rates, a contracting labour market and rising oil prices, this readjustment was all to be, to some degree, only a matter of time.

“Other triggers included the rising bond prices, escalating trade tensions between the world’s two biggest economies and concerns about valuations as we head in to earnings season.”

He continues: “This latest sharp global sell-off should serve as a timely reminder for investors to ensure that their portfolios are properly diversified across assets, sectors and geographical regions.

“In times of volatility, this is the investor’s best weapon to mitigate risk and to take advantage of the opportunities that present themselves.

“Indeed, as always, many investors will be using this sell-off as perhaps one of the last key buying opportunities of the year.”

Mr Green concludes: “A well-diversified portfolio and a good fund manager will help investors capitalise on the opportunities that volatility brings and sidestep potential risks.”