Please click the link below to view Shane Oliver’s thoughts on the recent falls in share markets.
Key points raised are
- Share markets have fallen sharply in recent weeks continuing the plunge that started early this year due to worries about inflation, monetary tightening, recession & geopolitical issues including the invasion of Ukraine.
- It’s still too early to say markets have bottomed.
- This will weigh on super returns for this financial year.
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 in shares may be avoided
- selling shares after a fall locks in a loss
- 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.
