While many investors are undoubtedly nervous and wondering what the share market has in store for them next, we are cautioning client’s against making investment decisions based on an emotional reaction to the current environment.
Most investors have seen losses to their investment portfolios and superannuation accounts, however, this drop is only on paper and the loss only becomes crystallised when investments are sold.
Knee-jerk changes to your portfolio now could have a negative effect on your retirement. Switching to cash will lock in losses and mean you miss out on the upside when the market eventually recovers.
Talk to your financial adviser to help put current market volatility into context and ensure any decision is aligned with your individual goals and long-term strategy.
