Akara Group International, the Tokyo based asset management firm presented its view on the recent equity market corrections and what the decline in trading levels means for the company’s global client base.

Speaking on behalf of Akara Group International, Chief Research Strategists, Mr. Karl Groves gave an insight into where his research forecasts market movements during the foreseeable future.

“Naturally our institutional clients have been a little rocked by the volatile start to 2016. However the signs of a forthcoming correction were noted in the third quarter of 2015, which helps us to prepare clients for how the markets have performed since the turn of the year.”

“The popular question at this time is ‘what level will put an end to this current correction?’. Whilst an important question for those looking at jumping back into the equity markets, We here at Akara Group view other indicators such as market behaviour and investor sentiment as more important indicators that help us to guide our stance towards aggressive or defensive.”

“If we take the S&P 500 as an example, and view its performance from an analytical perspective, we can identify a number of key fundamentals that demonstrate that a position in the region of 1748-1790 is a likely probability to the correction’s end point, ” continued Akara Group International’s Karl Groves.

However, with the high possibility of an end point to the market corrections being identified, Mr. Groves continued to recommend that investors remain cautious as volatility within the equity markets is likely to continue into the second quarter of 2016.

“If indeed we can assume that the market as a while will follow the trends displayed by the S&P 500, then we can then assume that the market is nearing a correction low at this point in time. This does not necessarily mean that we can expect a sustainable bear run for the rest of 2016. On the contrary, we will advise our clients to continue watching the market as short-term trades will likely cause further turbulence until fundamentals within the wider economy become much clearer.”