Source: ASX, AMP Capital
And while history doesn’t repeat it does rhyme and it’s often useful to look back at previous similar events to the latest worry to see how they panned out. This is where the experience around SARS is useful in relation to the latest coronavirus outbreak.
Secondly, recognise how markets work. A diverse portfolio of shares returns more than bonds and cash over the long-term because it can lose money in the short-term. While the share market is highly volatile in the short-term it has seen strong returns over rolling 20-year periods. So, volatility driven by worries and bad news is normal. It’s the price investors pay for higher long-term returns.
DR SHANE OLIVER
HEAD OF INVESTMENT STRATEGY AND CHIEF ECONOMIST
About the Author
Dr Shane Oliver, Head of Investment Stratgey and Economics and Chief Economist at AMP Captial is responsible for AMP Captial's diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.
THIS ARTICLE WAS RELEASE BY AMP CAPITAL 12 FEBRUARY 2020, FOR MORE AMP CAPITAL UPDATES GO TO WWW.AMPCAPITAL.COM.AU
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