Share market falls – Oliver’s Insights
AMP’s Dr Shane Oliver looks at seven key things investors should bear in mind during share market falls in this edition of Oliver’s Insights.
Dr Oliver summarises the key points as follows:
- Share markets have fallen sharply in recent weeks as uncertainty around US President Trump’s policies have led to renewed concerns about the risk of recession at a time when share market valuations were stretched.
- It’s still too early to say markets have bottomed and we continue to see a high risk of a 15% plus correction, although calendar year returns should still be okay.
- This will weigh on short term super fund returns but follows two years of very strong returns.
- Key things for investors to bear in mind are that: share pullbacks are healthy and normal; in the absence of a recession a deep and long bear market should be avoided; selling shares after a fall locks in a loss and timing markets is hard; share pullbacks provide opportunities for investors to
buy them more cheaply; shares still offer an attractive income flow; and to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise.
You can access a copy of this edition of Oliver’s Insights here:
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