3 Oct 2019
Market Downturn - Don't Panic
As you will have read there are many factors, e.g. China/US trade war, BREXIT, etc. contributing to the global equity market correction. My simple message is not to sell and to ride out the volatility. By selling you are crystallizing a loss.
For our older clients you will be aware that we have been increasing your exposure to Australian bonds to protect capital while continuing to generate an income stream. We are limiting exposures to international bonds because of the negative yield.
For our younger clients its all about riding the “ups and downs”. The correction means that you will be dollar averaging down and in time when the market returns you will have been buying at a lower level. This also applies to our Aspire mortgage clients, and all should remember that the historical dividend yield on the ASX 300 index is about 4% per annum. Although it is important to recognise that past performance is not an indicator of future returns.
If you have any questions or concerns about your portfolio please feel free to contact us.