Hold tight: Retirees urged to ride out market turbulence
Written and accurate as at: Aug 15, 2024 Current Stats & Facts
It was lance corporal Jones of Dad’s Army fame who immortalised those two words, ‘don’t panic’. It’s exactly the right advice for those in retirement who are seeing equity markets see-saw due to geo-political events, profit-taking and rising Japanese interest rates.
So, it’s important to remember market corrections are the norm, particularly after the rally in tech stocks during July.
Since the 1980s, the US market has had a 10 per cent or more correction once a year (except 1995 and 2017), and Australia usually follows this lead. [When the markets closed on Tuesday, all three indices had regained some lost ground.
“Our clear message to clients is ‘don’t panic’ – a well-designed actively managed portfolios is intended to weather times like this. In good times (which last a lot longer than bad times) investors often can’t remember specific times there were significant market corrections, and what we are experiencing now is no different to what we have been through in the past.
Always happy to discuss further should you wish.
