Please click the link below to view Shane Oliver's views on the recent sharemarket volatility.
Key points raised are :
- US regional bank failures added to uncertainity about the investment outlook flowing from inflation and rate hikes
- Specific issues with the failed banks and action to protect depositors may limit broader problems for US banks.
- But the wider riskes are high and it's normal for problems like this after rapid rate hikes.
- Given the new high risk of recession (which would curtail inflation) it makes sense for central banks, including the RBA, to pause rate hikes
- Share market falls are painful for investors but the best approach for most is to stick to a long term stratregy