It was another down day for ASX investors on Tuesday with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sinking 1.5%. The index is now just 18 points above the 5,000 point level.
The mood on global markets is certainly concerning with all eyes this week on whether the US Federal Reserve will raise interest rates or not.
The pessimistic mood that there could be further falls ahead for global markets is being reinforced by a number of high-profile analysts.
One of those analysts warning of more volatility ahead is Mr Shane Oliver, the Chief Economist at insurer and wealth manager AMP Limited (ASX: AMP). Oliver's views on the outlook for markets are well-respected and widely followed by investors.
Last week, Mr Oliver warned that, "for the next few months or so, the going is likely to remain rough for shares with the risk of further falls as worries about the Fed and China linger."
Oliver not only makes the point that from a technical perspective the recent bounce off of market lows fails to show conviction that a floor has been established but arguably more importantly from a fundamental perspective Oliver highlights problems in emerging market economies as a potential threat to global economic growth and stability.
Over the past three months, both AMP and the index are down just over 9%. Those are significant drops, however, many companies have fared far worse!
The broad-based falls in share prices should reinforce to investors that in times of turmoil it makes sense to have a steady hand at the helm of companies you hold shares in.
Managers who have been through multiple market cycles are arguably better placed to withstand the choppy waters that may lie ahead. Companies with tried and tested management such as Flight Centre Travel Group Ltd (ASX: FLT), Premier Investments Limited (ASX: PMV), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Brickworks Limited (ASX: BKW) could be safer portfolio holdings if a more serious market correction occurs.
