..:: AUTO REPORT AFRICA ::..
Related Articles
Global investors are taking advantage of buying opportunities ahead of policymakers looking to take more coordinated action on propping up economies due to the negative impact of the ongoing coronavirus outbreak.
This is the message from Nigel Green, the chief executive and founder of deVere Group, one of the world’s largest independent financial advisory
organisations, as G-7 finance ministers and central bank officials held a teleconference to discuss the issue on Tuesday.
U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell led a conference call just before Wall Street opened. Bank of Japan Governor Haruhiko Kuroda and European Central Bank
President Christine Lagarde were also on the call, amongst others.
Green noted: “For many, the joint statement will not go far enough,
and there will be doubts about the effectiveness. This disappointment
will dampen the market reaction somewhat.
“However, in general, the markets are looking for a reason to return to
being bullish – which has been their default position for an unusually
long time.
“This teleconference between G-7 finance ministers and central bankers will likely provide some of the reassurance they seek.”
He continued, “Many investors will be seeking to buy ahead of any
potential measures aimed at cushioning the coronavirus blow kicking in, in order to take advantage of the current lower entry points and, therefore, the opportunities, while reducing risk at the same time.”
Last week, the deVere CEO said: “Until such time as governments pump liquidity into the markets, markets will be jittery triggering
sell-offs.”
Green affirmed, “It was billed as ‘the worst global market sell-off
since the 2008 crash’ but it then became an important buying-opportunity for many investors.
“Now, with a more coordinated international response in the pipeline, many investors can be expected to jump off the sidelines again.”
Previously, he noted: “In the current volatile environment, investors –
including myself – will be revising their portfolios and drip-feeding
new money into the market.”
The deVere CEO concluded : “Central banks and finance ministers of the G7
discussing an action plan to take on the far-reaching impact of
coronavirus will buoy investors.
“Many will be seeking to increase their exposure to the markets ahead of the implementation of any measures that are rolled out as a result of this conversation.”
