Shane Oliver Head Economist at AMP discusses what investors need to know about volatility.
- The past year has seen volatility in investment markets spike higher.
- While fundamental drivers of volatility have fallen over time, investor sentiment has become a bigger driver.
- Volatility may remain elevated for a bit yet, but the key for investors is to recognise that volatility is not necessarily the same as risk and to adopt strategies to avoid being sucked into emotional responses.
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