When the best advice is to just hold tight
I had a troubling email come across my desk this morning, which quoted an executive from one of the countries’ largest industry superannuation funds. The article highlighted that they have seen a rush of clients, who do not have a financial adviser, switching to cash. The executive is quoted saying that “it has been sad to watch a procession of members selling down their assets in response to the market falls and crystallising losses”.
I appreciate the current environment seems like very dark days, and with so much concern about health, families, jobs and the economy it can be easy to assume that this crisis will go on forever. The crisis is continuing, and there will no doubt be more disruption to our daily lives. No one can predict when it will pass, though I note there is already some positive economic news very slowly starting to flow out of countries like China and Singapore. I am still concerned about how we as a country will handle this crisis, and how it will play out over the coming weeks and months. I think it is highly likely that we will continue to see very volatile share markets, both in Australia and internationally, and I also expect our property sector will come under pressure at some stage of this crisis. All of these factors are concerning and can lead to anxiety regards your own financial position and that of your loved ones. That said, there is also a very small part of me that is starting to feel cautiously optimistic based on other countries experiences. I am hoping over the next few weeks this feeling will increase, as the old saying goes, it is darkest before the dawn!
To finish off, I have include a link below to an article I was interviewed for last week. The article is less about money and more about sound advice in a financial crisis. Wishing the best to you and your loved ones during this very difficult time, and please feel free to contact me at any stage.
Please note that the content of this communication should be treated as general advice given it does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.