Investors should brace themselves for another tumultuous day on Australian Stock Exchange, but local financial advisers are urging people to stay calm and not panic.
Fennell West director Shane West said the US markets had again been hit hard overnight, meaning another significant drop was expected in Australia today.
He said Monday’s record slump made impelling news and today’s trade would likely add to the scale of the financial event, but it was not all doom and gloom.
“It’s easy for investors to get nervous and feel the need the sell their shares. Now is not the time to make hasty decisions regarding your super and investments,” he said.
“For many of our clients for example, their portfolios are designed to help them retire early, to provide an income now or in 10 to 15 years from now.”
“Shareholders need to remember why they have invested in the share market. Shares are a long-term investment and the biggest mistake investors can make is to forget the end goal.
Business partner, Director Ryan Fennell urged investors to take a few deep breaths.
“Sit back, have a coffee, switch the TV off and head outside and enjoy some very brief sunshine” he said.
“If that doesn’t clear your head give your adviser a call and they will reiterate why you invested in shares and help you refocus on your long term plans.
“Make no mistake, while the share prices are low there will be plenty of opportunists snapping up some bargains, so why would you give yours away?”
Mr Fennell said in the last three years, investments and superannuation had seen strong growth – up 12 per cent in most cases.
“Only last week the Commonwealth Bank released their profits and are paying a higher dividend than last year, so there are some good signs as well,” he said.
