Seven things investors need to keep in mind…

MBA Financial StrategistsNewslettersSeven things investors need to keep in mind…

We’ve attached for your interest an article from Dr Shane Oliver, Head of Investment Strategy and Chief Economist that looks at the recent pull back in investment markets and renewed uncertainty regarding the outlook.

The key points are as follows:

  • 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’s growth slowdown and property developer 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