The plunge in shares – seven things investors need to keep in mind

Shane Oliver, Head of Investment Strategy and Chief Economist

  • Share markets have fallen sharply on the back of coronavirus concerns.
  • Shares may still have more downside and the uncertainty around the coronavirus crisis is very high, but we are of the view that it’s just another correction.

Key things for investors to bear in mind are that: corrections are normal; in the absence of recession, a deep bear market is unlikely; selling shares after a fall locks in a loss; share pullbacks provide opportunities for investors to buy them more cheaply; while shares may have fallen, dividends are smoother; and finally, to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise during times like this.

 

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