AMP Capital’s Quarterly Strategic Outlook shows there are opportunities for investors who are "prepared to ride out the increased volatility in global sharemarkets", present particulary over the last quarter.
Although the September quarter has been the first negative quarter for global and New Zealand shares for over three years, AMP Capital managing director and head of fixed income Grant Hassell says it indicates a correction to return markets to reality rather than a prolonged bear market.
“Our view is that China growth risks are overplayed, global share market valuations are attractive, US interest rates will not rise materially, the global banking system is better capitalised than in previous years and there are no major housing market bubbles to bring it down,” said Hassell.
AMP Capital holds a less pessimistic view on whether the potential for a slowdown in the Chinese economy wil lead to a global recession.
“China is going through a challenging transformation but we remain of the view that a slower China is a more sustainable China," said AMP chief economist Bevan Graham.
"In addition, we’re already starting to see signs of recovery. Consumer confidence rose to a 15-month high in September, which allays fears that the recent share market correction would have a det-rimental impact on household spending.”