By Dr Shane Oliver
Head of Investment Strategy and Economics and Chief Economist, AMPSydney, Australia

Share markets have fallen in recent weeks on the back of worries about inflation, monetary tightening, the Omicron disruption and the rising risk of a Russian invasion of Ukraine.

Its too early to say markets have bottomed.

Key things for investors to bear in mind are that:

  • corrections are healthy and normal;
  • in the absence of a renewed recession share market falls may be limited;
  • selling shares after a fall locks in a loss;
  • share pullbacks provide opportunities for investors to buy them more cheaply;
  • shares continue to offer an attractive income flow;
  • shares often bottom at the point of maximum bearishness; and finally,
  • to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise.

For a more in depth explanation of the seven things to keep in mind please click here to read the full article.