Speaking to SMSF Adviser, David Sokulsky, the UBS Wealth Management Australia head of investment strategy, said that while ANZ and some of the resource stocks like BHP and Rio Tinto saw rallies last week, these markets have become incredibly volatile recently, therefore investors should be wary.
“Commodities obviously get thrown around with the price of oil, and the price of iron ore, and then you’ve got the banks which are getting caught up in the global banking sell off, which we’ve seen hit Europe in particular very hard,” said Mr Sokulsky.
The banks, he said, have also been hit hard by concerns about the housing market in Australia.
“Every time we’ve seen some of those big events offshore, and then the talk of Australian housing here, we’ve seen a lot of volatility in banking stocks and resource stocks,” he said.
“I wouldn’t say it’s a negative outlook for them, but investors need to realise they are increasingly volatile, and if they do invest in those sectors, they’ve got to be comfortable with that volatility.”