$100 billion has been wiped off the S&P/ASX 200 in a single session and there are fears the losses will continue.
It’s the second consecutive sell-off, with losses were spread across all sectors, but technology, financial, energy and real estate stocks were hardest hit. Bitcoin also plunged.
Wilson Asset Management’s Lead Portfolio Manager, Matthew Haupt, says there are two reasons spooking investors.
The first is the Bank of Japan’s decision to lift the cash rate from artificially low levels, which has hit the carry trade.
That’s a strategy where investors borrow a low-interest rate currency for investment elsewhere.
The second reason for the global sell-off is based on fears of a US recession on the back of recent soft jobs and manufacturing data.
Matthew Haupt expects losses will continue as investors pursue liquidity over leveraged investments.
#ABCBusiness
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