During the recent volatility in share markets, you may have been tempted to cash in your investments. This article by Franklin Templeton explains why you should instead hold on and “ride it out” in times of volatility.
Share market falls; are they always as bad as they seem?
Following a party room vote on Monday night, Malcolm Turnbull is now Australia’s Prime Minister.
Click on the link below to read Dr. Shane Oliver’s article on how this change may affect the economy and you.
Dr. Shane Oliver addresses the continuing turbulence in his most recent update, Shares & Global Growth Worries.
“Investors should be aware that shares often go through rough patches; selling after falls just turns paper loss into a real loss; market falls throw up opportunities; and dividends remain more attractive and more stable than bank interest.”
You would have noticed the recent volatility in Australian and overseas share markets, and may be wondering what is causing this.
The latest “Oliver’s Insights” – The Correction in Share Markets – discusses what’s behind these market fluctuations, and why we shouldn’t be worrying.
At its meeting today, the Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 2.0 per cent.
In the latest edition of “Oliver’s Insights”, Dr Shane Oliver discusses the outlook for Australian’s interest rates, and why he believes the RBA will cut interest rates again before the end of 2015.
To read the full article follow this link: Five Reasons Why the RBA Will Probably Cut Interest Rates Again
The Australian Dollar affects not only those going overseas, but almost everyone. Dr. Shane Oliver’s most recent article, “The Australian Dollar Doing What It Normally Does – Overshoot“, explains why a dropping Australian Dollar may be good for you (even if you are going overseas).
In the latest “Oliver’s Insights”, Dr. Shane Oliver looks at the recent volatility in the Chines share market, and the affects it may have on our economy.
The key points in the article are:
- Just as the rise in Chinese shares had little economic impact it’s hard to see the pullback having a significant economic impact either.
- Chinese economic growth is likely to remain “around 7%” with monetary and fiscal easing helping.
- The volatility in Chinese shares represents a necessary correction. Large cap shares are not expensive.
- The main dampener on commodity prices – and Australia’s terms of trade – is not China, but supply.
See Dr. Shane Oliver’s full article, China’s Share Market Volatility, for full details.
In the most recent edition of “Oliver’s Insights”, Dr. Shane Oliver addresses the implications of the Greek referendum result, and its likely affect on global economies.
The key points of the article are as follows:
- The Greek “No” vote means more uncertainty ahead regarding Greece, with significantly heightened risk of a Greek exit from the euro.
- The threat of a flow on to other Eurozone countries is likely to keep markets on edge in the short term. However, contagion is likely to be limited as the rest of Europe is now in far stronger shape than was the case in the 2010-12 Eurozone crisis and defence mechanisms against contagion are now stronger.
- As a result we don’t see the Greek debacle derailing the European or global economic recoveries. So while the correction in shares looks like it might go further in the short term, the broad rising trend in markets is likely to continue.
See Dr. Shane Oliver’s full article, Greece After The No Vote, for full details.