Since deciding late last week to prepare an article regarding the recent financial market volatility, the news has changed several times. This highlights to us that whilst the markets have been experiencing record lows and in some cases huge losses, the situation changes on a daily basis.
Therefore, rather than report the current situation, we wanted to provide you with information on trends that are emerging for investors and their likely implications. Below is a link to an Oliver’s Insights article which looks at 12 trends which should continue over the medium to long term.
Our philosophy for investment remains unchanged – make a plan, review your plan and stick to your plan. In saying this and given recent volatility, now may be the perfect time for you to review your plan in light of current economic conditions and, of course, your overall objectives. We have also included a link below to a recent article published in the Australian, in which Andrew Heaven of WealthPartners gives his interpretation of why we experience such volatility when we do not see a change on overall earnings corresponding.
Why is the sharemarket so volatile when earnings do not change so quickly
– The Australian (17/9/11)
On a final note, we wanted to share with you a chart which we personally find very comforting during times of high volatility. Click on the image below to see full version of the last 30 years in Australian and Global markets, including the impact of major world events. Even if you choose not to click, you can see that the overall trend is positive despite the fluctuations.
We encourage you to contact the office if you would like to discuss the above information further or would like to review your individual circumstances.