When markets shift, it's tempting to react - but doing so can lock in losses and put your long-term goals at risk. Learn how ASB portfolios are structured to navigate volatility and deliver strong investment outcomes through a disciplined, long-term approach.
Growth assets like shares performed well in August on hopes of US rate cuts, but rising long-term interest rates driven by large government deficits were the bigger story. Anticipating this, we’ve positioned portfolios towards shorter maturity bonds, reflecting our active approach to managing risk and capturing opportunities from long-term economic trends.
The US share market surged over 27% to a record high, with global markets following suit and AI-related stocks driving much of the momentum. While we remain optimistic about the long-term potential of AI, current valuations look stretched, so we're approaching with measured caution and focusing on reasonably priced opportunities.
Markets fell sharply amid global turmoil but quickly rebounded, with the S&P 500 seeing its fastest ever recovery from a near 20% drop since its peak in late February. This unpredictability highlights the need to focus less on short-term swings and more on long-term fundamentals and strategic, targeted investing.
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