‘Don’t panic,’ says BT
It is inevitable that we will face market crises in the future, but we should avoid panic selling and ride the waves, according to BT Super for Life head Melanie Evans.
“Economies and markets are often affected by unexpected economic, political or natural calamities, like the current US sub-prime mortgage crisis,” Evans said.
“The key for investors is to stay calm, focus on investment fundamentals and remember that long-term investors have nothing to gain from short-term reactions.”
In a special market update for investors released today, BT cites many times in recent history when international share markets have been affected by major events.
The report points out that the Asian currency crisis, the Russian bond market default and the September 11 attacks on the World Trade Centre are all examples of events that temporarily pushed down share markets, but did not have a long-term negative affect.
Diversifying your portfolio, understanding risk and dollar cost averaging are some of the ways BT recommends protecting yourself from volatile markets.
Recommended for you
Insignia Financial has announced the status of the two private equity bidders as due diligence comes to an end, with one bidder opting to pull out.
The corporate regulator has cancelled the AFSL of a Queensland-based financial services provider, having held the licence since mid-2016.
The financial advice industry has reacted to the appointment of Dr Daniel Mulino as the new Minister for Financial Services, with hopes for improvements in legislation and education standards.
With less than one-third of Australian business owners seeing an adviser, Business Health has detailed how advice practices can successfully target this underserved client segment.
