20 Jun The plunge in shares & flow on to super – key things for investors to keep in mind during times of market turmoil
Key Points:
- 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.
