22 Sep Correction time? Shares get the wobblies – seven things investors need to keep in mind
Key Points:
- Share markets have hit the wobbles lately on the back of a long worry list ranging from growth concerns, central bank tapering, the US debt ceiling and fears of about China Evergrande’s problems.
- Shares may still have more downside as it will take a while to resolve some of these issues.
- Key things for investors to bear in mind are that: corrections are healthy and normal; a renewed recession is unlikely and this will limit share market falls; selling shares after a fall locks in a loss; share pullbacks provide opportunities for investors to buy them more cheaply; shares offer an attractive income flow; and finally, to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise during times like this.
