The plunge in shares - seven things investors need to keep in mind


The attached note looks at the plunge in share markets over the last week.

The key points are as follows:

  • Share markets have fallen sharply on the back of coronavirus concerns.

  • Shares may still have more downside and the uncertainty around the coronavirus crisis is very high, 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 are smoother; and finally, to avoid getting thrown off a long-term investment strategy it’s best to turn down the noise during times like this. READ ARTICLE

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