The plunge in shares

Please click the link below to view Shane Oliver's thoughts on the recent falls in share markets. 

Key points raised are

  • Share markets have fallen sharply in recent weeks continuing the plunge that started early this year due to worries about inflation, monetary tightening, recession & geopolitical issues including the invasion of Ukraine.
  • It’s still too early to say markets have bottomed.
  • This will weigh on super returns for this financial year.

Key things for investors to bear in mind are that

  • share pullbacks are healthy and normal
  • in the absence of a recession a deep and long bear market in shares may be avoided
  • selling shares after a fall locks in a loss
  • share pullbacks provide opportunities for investors to buy them more cheaply
  • shares still offer an attractive income flow;
  • and to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise.