Inflation risks will increasingly rattle markets: deVere CEO

Investors must avoid complacency and buckle up as inflation-triggered volatility is set to shake markets until the end of 2021, warns the CEO of deVere Group.


The warning from Nigel Green, chief executive and founder of deVere, one of the world’s largest financial advisory, asset management and fintech organisations, comes as Chinese stocks plummeted to almost their lowest level in a year, with price surges cooling hopes for measures to help economic growth.


It also comes ahead of the latest U.S. inflation data on Wednesday. The consumer price index (CPI) is expected to show a 0.6% jump compared to the previous month, or a year-over-year gain of almost 6%, which would be the biggest in 30 years.


Mr Green notes: “Ongoing and heightening inflation fears in the world’s two largest economies – and elsewhere in other major economies – are going to spook global financial markets as we move towards the end of the year.


“Whilst markets might not be balking right now, as they currently have a sort of tunnel vision, with central banks and governments around the world pulling back their unprecedented support programs due to price surges amongst other factors, the easy money tap is steadily going to dry up.”


He continues: “Investors need to avoid complacency. As central banks are increasingly flagging, inflation has become a concern and growth is to become slower due to supply side bottlenecks – and, therefore, interest rate hikes are coming.  


“This will all trigger increasing market volatility moving forward as the world readjusts again.”


Last week as several major central banks gave their latest forecasts, the deVere CEO said, “This is the hardest time to be an investor and worst time not to be.  There are real opportunities to be had, but navigating the territory is set to become more complex in coming months as we move towards a new era of interest rate normality driven partly by inflation fears.”


Investors, he observes, should remain in the market, but they should review their portfolios to ensure that they are properly diversified across asset class, sectors, regions and currencies.  This will ensure they are best positioned to mitigate the downsides and seize opportunities arising from the likely volatility.


He concludes: “From China to the U.S., the UK to Europe, inflation risks are building, and this will increasingly rattle the markets.”

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The deVere Group of Companies, is licensed in various jurisdictions, however, the products and services offered by the respective entities may vary per jurisdiction. The deVere Group does not warrant, either expressly or implied, the accuracy, timeliness, or appropriateness of the information contained on this website. The deVere Group disclaims any responsibility for content errors, omissions, infringing material and any responsibility associated with relying on the information provided on this website. For more country-specific products and services offered by the deVere Group of Companies, you may wish to visit the specific national deVere website, if and where available. The information contained in this website is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved and your country of residence. Before making any decision or taking any action, you should consult a deVere Group Financial Advisor.

© 2010 – 2023 deVere Group. All rights reserved.

© 2010 – 2023 deVere Group. All rights reserved.

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