If there is one thing that history shows us, it’s that market volatility will always come and go. With that in mind, here are some key points we think are important for you to know right now:
- Whenever there are large market-driven movements as there are currently, it is likely there will be continued volatility until things settle down again.
- The key for investors is not to panic. We remain confident that while market conditions will continue to be volatile over the rest of the year, now is not the time to make knee-jerk reactions and run to cash (as many did in the depths of the GFC – with terrible results in the ensuing recovery).
- Keep your head, stick to your long term strategic plan, and look through the current noise to keep headlines in perspective (especially against the backdrop of market valuations and economic fundamentals). There is nothing in the past week or so that should change your medium to long term investment strategy.
If you have questions relating to the current state of the sharemarket, please contact us.