Even veterans like Ellerston’s Ashok Jacob are having difficulty picking the bottom, as the seesawing in financial markets continues amid extreme volatility.
Tariff and trade barbs are flying, financial markets are seesawing and in the short term there is no end in sight to the extreme volatility.
This could go on for weeks and even months.
US President Donald Trump and his opponent in the trade boxing ring, China’s President Xi Jinping, have equally fine-tuned their rhetoric.
Neither is backing down on their tariff threats and in the current climate that makes even veterans of financial markets nervous. Picking where equity markets may bottom is a difficult – if not impossible – task as geopolitical risks and inflationary pressures linger and even increase.
Ellerston Capital’s executive chairman Ashok Jacob, who has investment experience spanning more than 41 years, is sure of one thing though: a risk on scenario won’t return while instability like this persists.
Source: https://www.afr.com/companies/financial-services/severe-financial-markets-instability-makes-picking-the-trough-elusive-20250408-p5lq2d