Market Volatility

 

A number of factors have contributed to this extreme volatility, including political events, natural disasters, the US debt debate and concerns over the problems in Europe. On the upside, Australia does not have a huge government debt. Relative to other parts of the world, Australian banks are also quite financially strong. However, please bear in mind that markets will continue to go up and down for a while due to ongoing uncertainties in political and economic environments across the world.

 

Clients are asking should they panic! The answer is NO. At times like these it’s really important to stay calm and remember some of the fundamental principles of investing, such as making sure you have a diversified portfolio, and investing for the long term. We know you have heard this all before but it’s true.....by taking a long-term approach to investing, you give your investments time to recover from the downswings that are a natural part of any investment cycle.