What to do in a falling sharemarket?
Falling share prices around the world can make anyone think twice about their financial plans. Investors with margin loans are especially affected. Find out more about margin loans and borrowing to invest. If you own shares directly, you are probably experiencing losses, at least on paper. If you own shares indirectly through your managed fund or superannuation, you will also be affected. What should you do? The case for doing nothing Falling markets take away a lot of the froth and bubble, creating better value and more room for future reward. If you own shares as part of a good financial plan that suits your needs and personality, then you will have been prepared for these events even though you may not welcome them. If your shares pay steady, reasonably reliable dividends, then changing share prices may be less relevant. Many Australian companies pay regular and often generous dividends. Historically, shares have been worth the risks as long term investments, but sometimes dangerous
