The meltdown in the Chinese stock market and the persistent uncertainty over Greece do not affect the local stock market directly – but that does not mean the volatility does not matter.

“Neither of these situations has, or is, affecting the local market directly, however, as we have seen in the recent financial crisis, any widespread and sustained financial turmoil does have an effect on investor sentiment, whether directly participating in a particular market or not,” the CEO of the Malta Stock Exchange, Eileen Muscat, said.

“China is a huge economic powerhouse and, therefore, the recent considerable volatility seen in its markets, which has seen share values plummet, has been followed with more than a little interest. This downward spiral appears to have been contained to these markets which are now regaining ground.

“What is happening in Greece is very complex and as we have seen during the last few days, is far from over, and potentially there may be many more twists and turns before a definite outcome emerges,” she warned, saying it was always important for investors to make decisions based on their particular needs and the risks they are prepared to take in the light of information available, with, the help, as may be necessary, of their investment advisers.

With bank interest rates still at record lows, bank products are also at a disadvantage. APS private clients manager Kenneth Genovese said that a one-year fixed deposit yields around one per cent, “providing a real challenge for people relying on bank interest to supplement their other income”.

However, the quantitative easing set in motion last March created various opportunities for investments, albeit with a number of risks.

“An ideal medium for capitalising on this situation and reducing investment risk, is investing through a fund or collective investment scheme. A fund offers clients the opportunity to access capital markets with relatively small amounts of money. The advantages in investing in a fund are the choice of risk, cost effectiveness, professional management, multiple points of entry and diversification. Notwithstanding these advantages, funds are not risk free, and one should consult an adviser before investing to ensure that the chosen fund is line with his/her investment objectives,” he said.

With one financial crisis seemingly following on the heels of another, it is perhaps no surprise that investors should consider other asset classes. And the sale of a Henry Graves Supercomplication timepiece, made by luxury watchmaker Patek Philippe in 1933, for a world record sum of $24.4 million last year, has not gone unnoticed.

The Patek Philippe agent in Malta, Edwards Lowell, has seen a noticeable increase in interest in watches as an investment, especially when it comes to top brands like Rolex and Patek Philippe.

Managing director Malcolm Lowell said these two brands were by far the most interesting for investors, although a new line they now represent, Lange and Sohn, is also making waves.

“When Christies and Sotheby’s have watch auctions, they often dedicate an entire auction to just Patek or Rolex, putting all the other brands together on another day,” he said. The top brands do not churn out these precision items for the mass market, meaning that there is always going to be more demand than supply. In fact, new models are sometimes as sought after as old ones.

“Many people buy watches not because they want to wear them but purely as an investment; the most sought-after models could easily double in value as soon as they are released.

“We are lucky to get an allocation of models!” he smiled.