Bloody Monday as $60 billion torched on sharemarket
“Bloody Monday as $60 billion torched on sharemarket” does not make for pleasant reading, nor is a market fall of 4% in a day anyone’s idea of a comfortable time at the office.
The All Ordinaries Index is perilously close to dropping below the 5,000 point mark, as the index has had an almost 14% fall in 3 weeks. So, should we be hitting the sell button?
Well, not quite. As the sage Warren Buffett once noted, “be greedy when others are fearful, and fearful when others are greedy”. Now is likely to be the time when others are starting to get fearful, selling their holdings so they don’t see their portfolio diminish any further. But this isn’t likely to be GFC Mark 2, as many companies posted healthy increases to their net profit in the reporting season only a couple of weeks ago.
Image from Bloody Monday article by SMH on 24/8
The economy isn’t in the doldrums like it was in 2008, when people were losing their jobs and house prices were struggling to make headway north.
Our role as your financial planner is to help you keep your head when others about you may be losing theirs, and to provide some clarity to see the bigger picture. Your longer term goals (financial or otherwise) shouldn’t be shaped by some minor turbulence in investment markets along the way – it’s important to keep that in mind.