We're one trading day into August and, while July was another positive month and the fourth in a row, many commentators are concerned about the outlook for the market from here. We can never predict the market but we know when it is more volatile than usual. With that in mind, please read the following summary of ASIC's key tips for investors from their Moneysmart website (moneysmart.gov.au) which are wise words for all times.
- Despite a strong recovery since March, volatility remains high. You shouldn’t rely on past performance for an expectation of future results and don’t invest more than you are willing to lose in speculative products.
- Avoid trying to time the market – picking the bottom is nothing more than luck and be sure to not mistake it for skill.
- Focus on your longer-term strategy and don’t make rash changes to your strategy based on recent market falls or gains.
- Share valuations: During COVID-19, the revenue of many companies has been significantly impacted. It’s important to remember that past earnings are not indicative of future earnings. However, the market is forward-looking and a company facing hardship currently doesn’t necessarily have to go down.
- Stay up-to-date with market events and be open-minded when considering how it could impact your investments.
The team at Rivkin will continue to keep members as informed as possible to navigate through this difficult period.
