MELBOURNE, AUSTRALIA -- (Marketwired) -- Jul 14, 2015 -- "With the latest news from the International Monetary Fund it seems the ride is far from over," according to a spokesperson from Melbourne investment firm, Thomson Rowe Partners. If Australia's economy is a rollercoaster, then the recent correction after the Greek referendum was that big drop that sends your stomach into your throat. Stocks on the S&P ASX 200 and All Ordinaries plummeted up to 10% as billions of dollars was wiped off the market in hours of trading.
The International Monetary Fund (an international organization that works to mediate international trade, promote financial stability and encourage sustainable economic growth) recently stated that without more reforms, Australia could be facing further drops in economic growth. The good news is, there are solutions.
"The weaker outlook could be avoided if Australia sustained demand through the current economic transition, lifted productivity and reduced the risk of financial disruption," the IMF said, in a nod to the Reserve Bank of Australia, that monetary policy should "stand ready to ease further by lowering interest rates if the financial stability risks remained contained. Housing market risks should be contained with prudential policy, but it expected APRA's regulatory approach to succeed."
How Does This Affect The Stock Market?
The news is not encouraging for investors waiting for stable Australian markets according to Thomson Rowe Partners, but smart investors don't need to wait to start making money "there is no point waiting for the markets to be stable, if it's not a Greek crisis, it's a Ukraine crisis or a GFC, there is always some sort of bad news ready to destabilise markets. The key is finding a strategy that takes the emotion out of trading and performs in both volatile and stable markets. Even in the worst conditions, there are always individual stocks increasing in value."
Thomson Rowe Partners' solution to unpredictable economic conditions has been the further development of trade analysis and stock market monitoring technology that helps investors mitigate risks in a turbulent marketplace. Investors are shown how to see through the media hype and find stocks trading below real value. Trading on a range of global markets -- including the ASX -- clients of the company have been reaping the rewards.
Thomson Rowe continues, "We can't change the way the markets work with policy, instead embrace the volatility and learn how to take control of your finances. Individuals actually have more power than the banks when it comes to trading. Individual investors are nimble and can move in and out of the market quickly, it means they can open and close positions to take advantage of turbulence. Our clients love volatility, the more ups and downs, the more opportunity."
There are now more companies investing in similar technology that works to stabilize markets for small investors who are not as exposed to market moves as institutional investors.
As uncertainty lingers over the economy and the Australian government grapples with economic policy, more investors are taking matters into their own hands. Interestingly, Thomson Rowe clients have seen higher returns and experienced greater consistency than their institutional rivals. With those results expected to continue, we might be seeing the start of an investor revolution, which sees customers leaving the lacklustre major firms and opting for a more DIY approach.
About Thomson Rowe Partners
Thomson Rowe Partners are a Melbourne based investment firm with a focus on developing innovative trading technology. Before creating trading tools for individual investors they developed the first automated trading platform utilised by a major hedge fund. After several years of success in the corporate trading world, they abandoned the major firms to create a suite of products that shared the investing secrets of large institutions with smaller investors.
Contact: Stacey Harris Email Contact www.thomsonrowepartners.com
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