The 4 investments to buy in the next pullback

The overwhelming consensus we are hearing from the professional investing community is that the volatility spike on August 5th was not so much a scare, but a gift for patient investors. 

Sure, it was the worst day for the ASX 200 in four years and the worst for the Nikkei 225 since 1987. But, to quote from an interview we just completed with Lazard Chief Market Strategist Ronald Temple, it was a "healthy moment" and "a great opportunity to add capital."

But just because there has not been more downside to this story hitherto does not mean there aren't lessons to glean from this experience.

Investors were heavily biased towards risk entering this spike despite the risks around economic growth, equity market valuations, and market liquidity.

And, as one of our panellists will explain today, some of the key risks created by the breakdown of the carry trade and once-true recession rules remain unresolved.

In this episode of Signal or Noise, we are looking at the lessons from the August volatility spike. Namely, what investors can do to stay focused when chaos is erupting around them and how you can prepare for the next sell-off (whenever it may be). 

We'll be doing this with a panel consisting of three of the Asia-Pacific region's most experienced and respected investors:

• Thomas Poullaouec, Head of Multi-Asset Solutions, APAC at T. Rowe Price (ex-BNP Paribas, State Street Global Advisors)
• Kellie Wood, Head of Fixed Income at Schroders Australia (ex-UBS, AMP Capital)
• Arvid Streimann, Head of Global Equities at Magellan Financial Group (ex-RBA, UBS, and Morgan Stanley)

Tune in to also hear about how these investors handled the August 5th spike - and what they would love to buy in the next sell-off.

Note: This episode was taped on Tuesday 27 August 2024. You can watch the show, listen to the podcast, or read our edited summary here.