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Get ready for more ups and downs on world stock markets GLOBAL TRENDS By LEIGH ROBERTS INVESTORS hold on to your hats. The stock markets of the world have been on a wild ride and are likely to continue their mad rise and fall for the rest of the year. But keep calm, don't be swayed by emotion, and take a long-term view, say the investment experts. In the first month of the new millennium, the JSE and most other global markets suffered a sharp increase in volatility, with share prices reaching record highs and then losing their gains in a few days. Some investment experts aren't surprised at the heightened volatility. It's a result of the huge rise in markets in the fourth quarter of last year, says Graham Boyd, investment strategist of Citadel. "Markets can't keep going up without stopping for breath. Moreover, certain sectors, like IT stocks, have risen to such high levels that investors are wondering whether there is much more upside. Hence you get the wild swings in share prices." US interest rates have played a big part in the volatility. The world's markets took a few steps backwards in midJanuary on the fear of a sharp US interest rate rise. The rate hike, announced this week, was smaller than expected - much to the markets' joy. But there are sure to be more rate hikes on the way, warns Armin Diem, head of SA asset management at Appleton Asset Management. Share and equity unit trust investors shouldn't let the heightened volatility scare them out of the market. Local shares could prove to be a hot investment - Investec is expecting a 25% to 30% rise in share prices this year. Top of page | Home Page | News | BT Money | Survey | Companies | People | Appointments | World | Markets | Trends | Columns | News Maker | Money Guides | Labour Guides | Calculators | Search | Archive | E-Mail us |