Market Crash? What Crash? 

Not long ago.

Just two months back.

The share market looked like a blood bath.

Headlines screamed:

“Markets crash 5, 10, 15%!”

“Red everywhere!”

And people panicked.

We spoke to a lot of clients during that time, some worried, some wondering if they should move to cash, some thinking they should wait for the ‘right time’ to reinvest.

Fast forward to today?

We’re nearly right back to where we left off.

Check out this chart comparing the top 200 companies in Australia (ASX200 in blue) vs the US tech-heavy (NASDAQ in pink):

In the last 12 months:

ASX200 is up 9%

NASDAQ is up 12%

Not bad, considering the fear just 60 days ago and the crash!

Here’s the truth:

People who “lose money” in these types of dips are usually the ones who sell when the market is down and move to cash, hoping to buy back in at the “right time.”

But markets don’t send calendar invites.

And timing it perfectly? Almost impossible.

The real key is having a plan and sticking to it.

Turning down the noise from the news, friends, social media and tuning into the people with a proven plan.

Zoom out for a second.

Here’s what the last 10 years looked like across major asset classes (via Vanguard as at April 30 – so it will look even better as at today!)

US shares returned 14.3% p.a.

International shares: 11.5% p.a.

Aussie shares: 7.7% p.a.

Cash? Just 2% p.a.

The real risk isn’t market dips, it’s bailing out too early and missing the rebound.

So let me ask you...

What’s your next move?

Are you on track with your investing or super plan?

Do you have a strategy in place or are you reacting to noise?

Contact us with “Review” if you’d like a fresh look at your strategy, especially with EOFY just around the corner.

Let’s keep your money working, even when the headlines get loud.

Talk soon.

7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised through Cobalt Advisers Pty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative of Australian Finance Group Ltd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087. 

 
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.