Julian McCormack - March 31, 2020
The return of value investing
Volatility is just share price movement. Volatility goes down when shares go up. When there's a market shock and there are huge movements in markets, volatility is very high. That's where markets are at.
All of the biggest up moves in markets are in down markets.
Julian McCormack from Platinum Asset Management joined me to talk about volatility, taking advantage of opportunities arising, virology and health care funds, and what kind of economic recovery we are facing.
He makes it clear that human psychology is playing with you and affecting how you make investment decisions.
"When people have to sell they have to sell, they never have to buy. You always have a choice about buying."
After the market has a big up day you feel very differently to how you feel after a big down day, and you shouldn't beat yourself up about this - that's the way humans are hard-wired to feel. But that's lousy for investing.
It's not a guessing game about trying to pick the bottom - that's irrelevant
Market downturns - you never know what the reason will be but a reason will arise.
Our listener question is from from Steven Mabb - who will make it through and who won’t. How does Platinum assess that in the current environment? What can investors do to identify who is healthy/cashed up and won’t go broke?
There's more in this podcast below with Dr Bianca Ogden, virologist and manager of the Platinum International Health Care Fund and Julian McCormack, Investment Specialist speaking with Gemma Dale from NAB. I highly recommend having a listen.
Bianca and Julian discuss the current market situation and what investors should consider, including:
• The spread of COVID-19, and how long a vaccine is likely to take,
• Why washing your hands is effective against viruses,
• How markets are responding to uncertainty,
• When equities will start to look safe again and
• Long term opportunities in sectors that have been crushed.
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.