Please click the link below to view Shane Oliver’s views on the current state of world markets.
Key points covered are:
- Financial markets have started the year on a rough note as last year’s worries about China and global growth in the face of US monetary tightening continue.
- This could drive more short term weakness. However in the absence of US/Global recession, which still seems unlikely, it’s hard to see a global financial crisis style bear market.
- The key is to recognise that shares offer a higher return potential after sharp falls, selling after big declines just locks in a loss and that dividend income from a well diversified portfolio is little affected by share market volatility.
