It's possible

understanding with invest blue

Shares hit another rough patch

September 15, 2016  |  #Investing

five things investors should consider doing

After a strong rebound in share markets from the February lows, we look to have entered a rougher patch. However, with most share markets offering reasonable value, global monetary conditions remaining easy and no sign of recession, the trend in shares is likely to remain up. But times like the present can be stressful as no one likes to see the value of their investments decline. The key for investors is to:

  • recognise that we have seen it all before as periodic sharp falls are regular occurrences in share markets.
  • avoid selling after falls as it just locks in a loss.
  • allow that when shares and all assets fall in value they are cheaper and offer higher long-term return prospects; look for investment opportunities that pullbacks provide.
  • recognise that while shares may fall in value the dividends – or income flow – from a well-diversified portfolio of shares tends to remain relatively stable and continues to remain attractive, particularly against bank deposits.
  • Turn down the noise. At times like the present, the flow of negative news reaches fever pitch, making it harder to stick to an appropriate long-term strategy let alone see the opportunities that are thrown up.

Get in touch with us today and talk to an adviser to discuss the value of your investments.

What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.