The note is written by Dr Shane Oliver, Head of Investment Strategy and Economics and Chief Economist, AMP.
The 'key points':
- 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.