Yamamoto International YMI - Volatility Means Opportunity

TOKYO, JAPAN, October 6, 2015 (Newswire.com) - ​Last week’s acute volatility in the world’s stock markets has provided investors with an exciting opportunity to join the bull market. That is the consensus at Asia-based investment boutique, Yamamoto International (YMI) following 5 days of rollercoaster trading which saw markets from the US to the Far East alternate wildly between losses and gains as investors weighed the implications of a Chinese economic slowdown for the global economy.

China’s Shanghai Composite exhibited the worst of the volatility lurching from 8.5% losses one day to 5% gains the next but the US Dow Jones Industrial Average’s Monday trading session began with a gut-wrenching 1,000-plus point fall before paring losses by the end of the day to 580 points.

We reasoned that much of the initial selling on the Dow was likely attributable to programmed trading by computers because we couldn't believe why companies like Apple or Verizon could lose 13-15%

YMI Yamamoto International, Market Analyst

“We reasoned that much of the initial selling on the Dow was likely attributable to programmed trading by computers because we couldn’t believe why companies like Apple or Verizon could lose 13-15%,” said an YMI Yamamoto International analyst.

“We bought some solid names at great discounts, many of which regained what they’d lost by the end of the day,” he added.

The firm cites the possibility of more shakeouts in the markets as the September meeting of the FOMC - the body that sets US monetary policy - draws closer. Investors remain divided on whether or not the central bank will raise interest rates and this will likely see a continuation of the swings seen last week.

“Volatility provides opportunity and careful timing can mean that gains are made in a very short space of time,” said the Yamamoto International analyst.