In times of share market volatility, it’s normal to feel concerned about the drop in values and the effects on your investments and retirement savings.
It’s also important to understand the 24-hour news cycle reports the majority of “bad news” only and you very rarely see the “good news”, especially for financial markets.
Prior to this recent downturn to the end of January 2020, Australian shares had returned just under 25% for one year and the global share markets had returned just over 27% pa.
Given we are more focused on longer period returns rather than shorter period returns, these results were:
– ASX All Ordinaries at 9.64% pa over 5 years and 9.01% pa over 10 years.
– Global share markets doing even better at 12.45% pa over 5 years and 12.89% pa over 10 years.
While it’s never great to see sudden share market corrections, these do happen on a semi-regular basis and smart investors generally hold their ground and continue to buy good quality assets that have been proven to show good returns time and again.
Of course, times like these may create more questions in your mind, so please contact one of our Hales Douglass Financial Services advisers if you have any queries:
Adam Passwell
Andrew Clegg
Jeanette O’Connor
Cheyne Whitford
Related Link:
Investor Daily Story – 10 March 2020
A major investment manager has urged investors to keep a cool head, even as markets come crashing down around them. Read full story here…
Share buying tip:
For those who’ve contributed a lump sum into this year’s super, it’s a great time to buy shares at a discount price compared to recent market values.
