5 practical tips for surviving the next volatility spike

For novice investors or nervous nellies, the end of July and the beginning of August provided quite a rude wake-up call. The volatility spike and ensuing snap sell-off was a reminder of how risk-heavy investors had become, complacent to the risks of weaker economic data, a growth scare, or indeed, eruptions in the global currency markets. The good news, at least for now, is that it hasn't had immediate further reverberations. Experienced investors who had diversified portfolios were able to stay put for the most part.  

However, given not all investors were in this position heading into the volatility spike, we thought it would be appropriate to pass on some practical advice ahead of when the next event occurs. 

To do this, we've engaged three of the most experienced investors in the region for the next edition of Signal or Noise. Between them, they have more than 75 years of experience in the markets and have seen (almost) everything:

• Thomas Poullaouec, Head of Multi-Asset Solutions, APAC at T. Rowe Price (ex-BNP Paribas, State Street Global Advisors)
• Kellie Wood, Head of Fixed Income at Schroders Australia (ex-UBS, AMP Capital)
• Arvid Streimann, Head of Global Equities at Magellan Financial Group (ex-RBA, UBS, and Morgan Stanley)

Note: This episode was taped on Tuesday 27 August 2024. The main show will be released on Monday 2 September 2024.

The question asked was: If there are investors who have been left scarred by the last few weeks, what is a practical tip you would give them?