Global financial markets are likely to rally in November and December, predicts the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The bullish prediction from deVere Group’s Nigel Green comes despite stock market corrections and weak investor sentiment.
He says: “History shows that November is the second-best month of the year for markets, behind April.
“This November could be even more positive as some markets are currently in correction territory – falling by more than 10% – and so a swing to the upside will be more pronounced.”
The deVere CEO continues: “Over 72 years, there have been 34 market declines. Only 12 of these have turned into bear markets. When does a recovery typically happen? Ninety-six days after the start of the correction. We’re now around day 90.
“If all this data holds up, we’re about to see a year-end rally, which investors would not want to miss out on.”
In addition, Nigel Green says that he expects the Federal Reserve will leave US interest rates unchanged this week.
“Investors will be watching this carefully, but the central bank of the world’s largest economy is almost certainly going to hold rates steady on Wednesday, which will be bullish for stock markets.”
Should stock markets emerge from correction territory, investors should consider a few prudent strategies.
First and foremost, maintaining a diversified portfolio remains crucial, as it helps spread risk and minimise exposure to sector-specific fluctuations. Reassess your investment goals, risk tolerance, and time horizon to ensure your portfolio aligns with your financial objectives.
Sectors that could appeal to investors as markets recover include tech and renewable energy. These sectors have demonstrated resilience and potential for growth even during market downturns.
Additionally, consider allocating funds to undervalued industries that may benefit from economic rebounds, such as travel and leisure, as pent-up consumer demand surges.
Lastly, monitoring the broader economic and geopolitical landscape is vital for informed decision-making, as global events can significantly impact market dynamics. Diversification, research, and a strategic outlook are key as markets exit correction territory.
The deVere CEO concludes: “We expect a rally for the end of 2023. You should consider revising your investment mix to seize the potential opportunities in what we think will be a new phase.”