Market volatility is constant, and the way in which markets fluctuate can be the result of a vast number of variables. In times of uncertainty and instability, many investors pull money out of share markets reducing demand and driving prices down.
The key issue markets are facing at the moment is the outbreak of the Coronavirus.
Global share markets and the media reacted to the Coronavirus (COVID-19) outbreak well before the World Health Organisation (WHO) today characterised it as a pandemic. Headlines about the outbreak have now dominated media cycles for weeks highlighting the uncertainty around how widely the virus will spread and the impact it may have on economies around the world. This uncertainty has resulted in a significant downturn in most if not all share markets.
Recent panic buying of groceries and a reluctance from people to visit restaurants or travel are signs of the real impact the Coronavirus is having on economies. One of the key concerns of investors is that although the primary impacts of the virus may be containable, flow-on impacts (such as cancellation of travel plans for example) will exacerbate the problem and cause further economic damage. In Australia, this has occurred off the back of an already horrendous summer for the tourism industry who are still struggling to recover from the bushfire crisis that gripped much of the nation earlier this year.
Without dismissing the significance of the Coronavirus and the concerns of investors, it is important to note that for most, superannuation is a long term investment so their savings will have time to ride out this downturn in the market. The situation continues to evolve by the minute but some things to be aware of now are:
When considering current and future market volatility, it’s important to remember that how you invest your super should be a long term strategy. But for those who are concerned, here are some general tips.
During challenging times, where market volatility is high it is understandable that members are concerned about their super. If you have any questions or for more information, please call us on 1300 369 901, Monday to Friday from 8am to 8pm (AEST).
Thank you for requesting a call.
We apologise this service is temporarily unavailable.