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It’s volatile times when the Royal Bank of Scotland says ‘sell’

Posted on Jan 13, 2016

The Courier Mail’s Glen Norris said the ASX 200 fell for an eighth straight session yesterday after the Royal Bank of Scotland warned investors to “sell everything” and prepare for a “cataclysmic year” that could see bourses around the world plummet by 20 per cent.

Pitcher Partners director of wealth management David Lane said the fundamentals of the global economy were stronger than RBS’s pessimistic outlook. “We are more bullish,” Mr Lane said, adding volatility seen in the market this week was probably due to low overall trading volumes, with many institutional investors still on holiday.

“Turnover on the ASX 200 last week was 40 per cent lower than one month ago, and around 25 per cent below the average turnover for the last 12 months,” he said.

We are more bullish,” Mr Lane said, adding volatility seen in the market this week was probably due to low overall trading volumes, with many institutional investors still on holiday.

“Turnover on the ASX 200 last week was 40 per cent lower than one month ago, and around 25 per cent below the average turnover for the last 12 months,” he said.

He added Australian investors had not been selling with great conviction and would be prepared to re-enter the market when share prices were attractive. “As the major market participants return to work across January, buying support should return,” he said.

Mr Lane said that while there was concern about China, the country was transitioning from a manufacturing-based economy to a services based one.