Global financial markets’ volatility is not special this year, giving an opportunity for selective buying of developing countries assets, according to Goldman Sachs Asset Management.
“That’s a comeback to normal conditions, - Goldman Asset head of international market strategy James Ashley said on a briefing in Singapore. - We think that the developing markets are currently oversold. We consider that as an attractive entry opportunity”.
Several other investment managers also say that possibly it’s a good time to buy. Aberdeen Standard Investments has purchased U.S. shares earlier this month, while Allianz Global Investments buys developing countries securities and separate shares in Great Britain, China and Europe. Northcape Capital Ltd. also sees opportunities for investments.
The situation worsened of the tough year for financial markets in November in the light of the volatility spike at the exchange floors from New York to Athens. Although global equities have partially recovered some of the recent losses, such markets as China, Hong Kong and South Korea entered the bear phase due to concerns about the global economic growth slowing down, oil prices falling and trade war between the United States and China. Godman Assets holds a position slightly above the market on China and prefers Indian and Indonesian shares, Ashley says.
“The key idea for 2019 is that we prefer shares to corporate bonds, corporate bonds to developing market securities, and developing markets to developed ones”, - he said.