Share Prices are down, what should I do? – Don’t waste the Downturn!
If there is one thing that is certain in life, it is uncertainty.
Back in February 2018, we posted about the sell-off in global stock markets, not because of any inherent structural problems but due to a decent leap in US wage growth, which saw bond yields jump in a knee-jerk reaction.
Since then there have been other issues at play too, like iron ore prices, Banking Royal Commissions, Aged Care Royal Commissions, and elections. All of these things provide uncertainty.
Now in August 2019, it’s the latest round of trade tensions between the US and China (again) which have spooked global markets.
You can refer back at our full February 2018 post here however we reiterate our Conclusion in that article here because it’s just as pertinent today:
Markets are generally driven by fear and greed. To get ahead of the game, you must
- “buy when nobody else wants to” = fear of the market; and
- “sell when nobody else wants to” = greed will fuel inexplicable buying.
At AAG, our investment philosophy has always been to source quality income paying investments that are sustainable in times of economic or political upheaval. Focusing on income allows an accumulation of funds to invest in your future.
So don’t waste the downturn, let’s get to work and rise above the headlines! Take a deep breath and remember:
- Skilled investors stick to their flight plan – stay the course and stay on target;
- Cash flow is king. Look for gifts that keep on giving in the shape of dividend income paying streams;
- Don’t waste any downturn – history has shown them to be only temporary;
- Opportunities are always there, sometimes they just require a closer look; and
- Have realistic market expectations.
Important information and disclaimer
This publication has been prepared by AustAsia Group, including AustAsia Financial Planning Pty Ltd (AFSL License No 229454).
Any advice in this publication is general only and has not been tailored to your circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance, or other decision. Please seek personal advice before acting on this information.
Information in this publication is accurate as at the date of writing, 12 August 2019. Some of the information may have been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.
Opinions constitute our judgement at the time of issue and are subject to change. Neither the Licensee nor any member of AustAsia Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility, for any errors or omissions in this document.
Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.