Coronavirus and the impact on markets

 In the past few weeks, we’ve seen share markets fall on the back of growing concerns about the spread of the coronavirus and increasing quarantine and travel restrictions. At times of heightened market volatility it’s easy to fear how your superannuation and other investments might be affected, but it’s important to understand the nature of market movements before making sudden decisions. 

Important considerations 

We understand that investors become anxious when superannuation and shares are so heavily impacted in a short space of time. It’s important to remember that these are long-term investments that fluctuate regularly, but historically produce strong returns over the longer term. Even after significant events such as the GFC, there is evidence the long-term trends are positive for investors who stayed the course and took advantage of the potential market swing. 

It is also important to remember that for many investors you hold a proportion of your investments in cash and fixed interest investments that will not be impacted by the current market volatility.

At the moment, any falls you have seen are technically only a ‘loss on paper’. However, when the market recovers there’s a good chance your investments will return to their pre-fall state over a period of time. Selling at the ‘bottom of the market’ only serves to crystallise these losses, making them real and irreversible. 

How we can help

Your financial plan was designed for you to suit your investment objectives and risk profile. Please feel free to contact us if you have any concerns or questions about the recent volatility we’ve seen in the market and we’ll be happy to assist.