Putting recent share market falls in context

Putting recent share market falls in context

Uncertain Times

Uncertainties regarding the emerging world and specifically China and the US Federal Reserve’s much talked about first interest rate hike have continued to result in volatile share markets over the last few weeks’

In the attached article share-market-falls-in-context Dr Shane Oliver – (Head of Investment Strategy and Chief Economist – AMP Capital) puts the recent share market falls into context.

Some of the key points  include.

Periods of declines and volatility in share markets are a normal part of the way that markets work.

Share market falls tend to be deepest when associated with recession (particularly US recessions).

Share market falls boost the medium term return potential once the share market bottoms as they are invariably followed by a strong rebound.

If you would like to discuss any of the points within this article further please don’t hesitate to contact your Adviser.