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Here’s how 4 experts are coping with the ASX 200 volatility

It’s been a turbulent year so far for ASX 200 shares.

The benchmark S&P/ASX 200 (ASX: XJO) is down only 6%, but that masks plenty of carnage in the underlying index.

For example, the technology sector is down an average of 24%.

Conversely, commodities and financials have rallied on inflation and interest rate fears.

In times of uncertainty, I turn to the experts.

Here’s how 4 ASX fund managers are weathering the storm.

Keep calm

In times of uncertainty, emotions can take hold and investors deviate from strategies.

Thoughts like “I should be selling now” or “maybe I wait on the sidelines” begin to enter.

But in times of ASX 200 volatility, more so than ever it’s important to keep a clear head and stick to your plan.

This is best summarised Fairlight Asset Management’s latest update:

“Few investors have been able to time markets successfully with the most damage incurred due to capitulation within the most challenged periods”

Bumpy road ahead for Mr Unprofitable

Unprofitable ASX shares have been the hardest hit.

Chief Investment Officer Mark Devcich at Pie Funds summarised why:

“There now seems to be a focus on companies seeking profitability rather than growth at all costs. However, it is often difficult for a company to make this transition as they have built their infrastructure around growing as fast as possible and are not optimised for profitability”

With the market less inclined to back capital hungry ASX 200 shares, expect a bumpy road ahead for Mr Unprofitable.

ASX 200: Cyclicals or growth?

The Copper price is currently at a standstill. Oil and coal prices are mooning. And banks are set to benefit from rising rates.

So we should be buying ASX 200 cyclicals right?

QVG Capital weighed in on the debate, arguing that growing companies with pricing power is the way to go:

“We are sceptical of the view the best way to navigate inflationary times is by owning lowly-rated, low-growth companies without pricing power; we think the opposite is true”

Time to buy

The team at Ophir Asset Management believe the market is being driven by ‘top-down factors’ instead of underlying business fundamentals.

Subsequently, this has created decent buying opportunities for ASX shares:

“The good news is there are some very attractive opportunities now on offer in the market that we haven’t seen at these prices for several years”

The update goes on to say that there could be further downside if markets overcorrect. But valuations are now back at longer-term averages.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Lachlan does not have a financial or commercial interest in any of the companies or funds mentioned.
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