Sharemarket Volatility | Hewison

Sharemarket Volatility

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

The graphic below illustrates the returns of the Australian All Ordinaries Accumulation Index over the past 120 years to the end of 2019 – this index includes the reinvestment of dividends.  Over that time, returns have been negative 19% for 23 years, but have been positive for 81% or 97 years.  The average return over the 120-year period has been 13.1%. 

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

In February 2020, the Australian share market hit an all-time high but has since reduced around 10-15%.

While it is human nature to concentrate on the 10-15% fall, at times like this we need to take stock and look at the situation over the longer term; remembering that the share market has increased over 35% in value over the last four years - including this recent bout of volatility.

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

Firstly, I will admit, if you are invested in shares, it’s never nice to see the value of your portfolio worth less on paper. But remember, it’s just that, on paper. If you don’t sell, you don’t lose.

A 10% fall in the share market is not uncommon. Over the last 10 years, the sharemarket has had several 10% corrections, even with the overall market trending upwards over this period. If you can’t handle a 10% correction in the sharemarket, perhaps you need to ask yourself the question - Should I be invested in this asset class?

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

During a number of recent client conversations I have been asked how imminent another sharemarket correction (-20% fall) will be. This fear is typically derived from sensationalised media reports because as we all know, fear sells!

So, let’s look at some facts

From 1900-2016 the Australian sharemarket has risen in 81 of 117 years, as illustrated below:

years of sharemarket crash

 

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

I was pleasantly surprised that many of my clients took this market movement in their stride, taking it for what it was – a correction. Nonetheless, I thought now would be an appropriate time to give it some context and answer a few questions that might be on your mind.

What spooked the market?

It all started on the back of good economic data in the US. Unemployment is at a 17-year low and wage growth at its strongest levels since 2009.

How can this be a bad thing?

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.

Sharemarket Volatility

There’s no question that so far in 2016, global uncertainty, recent share market volatility and negative market commentary has weighed on investors’ confidence levels. 

In this seminar, Simon Curtain, Director and Private Client Adviser  highlighted a better way that investors can invest to protect for the long term, via strategic asset allocation.  

Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.au

Please note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.