Australian Investment Blog

The financial headlines over the first few days of 2016 have been enough to send all but the most committed stock market investor running for the hills - one major bank / broker has basically recommended dumping all shares!

However Market Matters beleives increased volatility leads to greater opportunity to both buy cheap shares and sell expensive ones depending on which direction the market is moving - see chart 1.

Markets are driven by "Fear and Greed" and these human emotions are significantly amplified when markets get the jitters and volatility rises.

Market Matters believes that 2016 will be the year of significant trend changes and if we are correct increased volatility is here to stay.