15 Oct Oliver’s Insights – The pullback in shares – seven things investors need to keep in mind
The attached note looks at the pullback in share markets seen over the last week or so.
The key points are as follows:
- The current pullback in shares has been triggered by a range of things – but most notably worries about rising US interest rates and the US/China conflict.
- Shares may still have more downside, but we are of the view that it’s just another correction.
- Key things for investors to bear in mind are that: corrections are normal; in the absence of recession, a deep bear market is unlikely; selling shares after a fall locks in a loss; share pullbacks provide opportunities for investors to buy them more cheaply; while shares may have fallen, dividends haven’t; and finally, to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise during times like this.