Wednesday saw the return of volatility to the Australian share market with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) tanking a full 1%.
The fall bucked Wall Street's lead which saw both the Dow Jones and the S&P 500 notch up new all-time highs.
Exactly what sent local investors scrambling for cover wasn't clear but after a prolonged period of low volatility, the falls experienced in September and again on Wednesday are likely to become more common place.
Leading the decliners in the benchmark S&P/ASX 200 index were junior iron ore producers who were sold off heavily, however, many industrial stocks fared poorly too.
Myer Holdings Ltd (ASX: MYR) closed over 7% lower after the listed department store retailer reported quarterly sales which failed to impress the market.
Computershare also declined, dropping 5% after the leading global registries business held its Annual General Meeting (AGM). At the AGM management provided guidance that it expects earnings per share to be around 5% higher in FY 2014 and commented that the operating environment has softened and presumably was weaker than they had been expecting.
Investors weren't piling into the blue-chips either. All the major banks lost ground too.
Bucking the trend on Wednesday were a handful of stocks which found buying support.
These stocks perhaps give some clue as to where investors are heading in an attempt to bulk-up their portfolios to withstand further downside volatility.
Gold miners enjoyed support and are perhaps starting to regain their defensive status. Northern Star Resources Ltd (ASX: NST) and Regis Resources Limited (ASX: RRL) were the top two performers in the index with gains of 5% and 4.1% respectively.
Meanwhile, infrastructure assets also found favour with investors. Aurizon Holdings Ltd (ASX: AZJ) and AusNet Services (ASX: AST) were amongst the leading gainers. In volatile times, just as investors view gold as a safe haven they also view physical assets, particularly regulated asset bases with recurring revenue streams as another defensive investment destination.
