Once again, we are experiencing a time of significant market volatility in the Global Economy.
Most analysts still maintain that Australia is well positioned to ride out the current market uncertainty due to many factors, such as low Government Debt, low Unemployment and continued demand from China for resources.
Click here to watch a short 3 minute video 3 Simple Investment Rules for hard times released today from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital Investors.
History has shown that markets always recover, and while further weakness may be shown by markets in the short-term, it is important to stick to the long-term strategy, and not make any rash decisions as market volatility has always been a normal part of the investment market cycle.
We must also remember that the media’s primary responsibility is to generate ratings and sell newspapers, and not always provide balanced views of the economy. We find that a lot of the market stress and uncertainty is fuelled by the media, so it is important to analyse carefully any media reporting which investors allow to influence their decisions, as this often leads to emotional rather than rational decision making.
How investors handle Market Volatility varies greatly, as while some investors see market downturns as opportunities to invest in shares at lower values, others prefer more comfortable switching to more conservative investment options. The most important aspect, is that the investor feels comfortable with the level of risk being taken for their particular circumstances and stage in life.
As always, if you want to discuss this matter and your options further with your Financial Planner, we are only a phone call away – Melbourne: (03) 9375 5100 or Brisbane
1800 767 657.
We will provide further updates in due course.