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.

Download full report