Oliver’s Insights – Shares & global growth worries

Shares and global growth worries

A severe correction but not a new bear market…

Key points

  • A perfect storm of factors led by China worries have caused turmoil in shares.
  • Our view remains that what we have seen is likely to be a correction (albeit severe) rather than a new bear market.
  • It’s too early to say shares have bottomed but valuations have improved, investor sentiment has quickly become very negative (which is good from a contrarian perspective) and China’s easing move should help if it’s followed up with more easing.
  • Investors should allow that: shares often go through rough patches; selling after falls just turns a paper loss into a real loss; market falls throw up opportunities; and dividends remain more attractive and more stable than bank interest.

To read the full article and view the video of Dr Shane Oliver speaking about the current share market situation, Click Here

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