12 Mar Share market falls – seven key things for investors to bear in mind
Key Points
- 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.