Is the sharemarket still a good investment?
If the recent falls means your portfolio is no longer able to meet your financial objectives, such as providing retirement income or building wealth to pass on to your family, it makes sense to review your portfolio with your financial adviser and look at alternatives to the sharemarket. However if you’re focusing on long-term growth, think carefully before selling out of your current investments. History has shown that growth assets like shares and property outperform cash over the medium to long term. In fact, over the last 20 years, cash has only outperformed other asset classes once. View example of $10,000 invested as cash in the bank versus investing your money in the stockmarket. Investing in the sharemarket is still an effective long-term investment strategy. In fact, if you can handle current levels of volatility, or have additional cash to invest, now may even be the time to take advantage of the cheap asset prices and invest more money!
