'Don't panic', investors told
WITH gloomy financial tremors rippling again through the global economy, the announcement that one of Warwick's biggest employers, John Dee, would shut down operations for two weeks next month, also sent some waves through the local market.
Southern Downs Regional Council mayor Ron Bellingham and local Chamber of Commerce president David Littleproud were quick to come out and downplay the situation but investors watching the US meltdown from their armchairs are likely still to be nervous.
But AMP financial planner Danny Spry said it was hugely important for people to stay calm in moments of turmoil and focus on the long-term.
He said the Australian share market had fallen by four per cent and some investors were indicating they are no longer as risk tolerant as they once were — especially those close to retirement.
“History shows that, despite periods of downturn, the market follows an upward trend over the long term, with shares providing better long-term returns than many other types of investments,” he said.
“All investments involve some degree of risk.
“This is why it's important for people to weigh up the level of risk they are comfortable with against any potential returns from their investments.”
Mr Spry said it was important to assess your risks to ascertain how to invest and people's attitude to that as well as taking into account their age and timeframe, will help determine the type of investment.
“One way for people to combat risk is to diversify — in other words, to not have all their investment eggs in the one basket,” Mr Spry added, saying a qualified financial planner can help people understand the risks and potential benefits of investing as part of an overall financial plan.