17 Nov 2020
Founder and Portfolio Manager at Cyan Investment Management, Dean Fergie, says the current heightened volatility in markets means now is the time to be diversified and not back a recovery story in one particular industry.
“At the moment we’ve got a little bit in tech, in these businesses that look really highly overvalued but are scalable and have got good growth,” he says. “We’ve also got quite a bit of money in stocks that offer traditional value. I think that with the RBA lowering interest rates to record lows… that the market is also going to gravitate towards income-based securities.”
Dean says those investors sitting on cash and waiting for a market pullback have missed the recent rallies and are missing out on income.
“As the market continues to run… this All Ords this month is up 10%, we’re seeing that people feel like they’ve just got to follow the crowd into the market. So I can kind of see that continuing, largely because… you put your money in a term deposit and get 0.5% [return] for a whole year.”