You have no doubt read or heard about the recent volatility in the stock market over the last few days. This has followed almost 5 years of unprecedented growth where values increased generally at over 20% per year. So it was not unreasonable to expect a correction at some time.

The cause of the correction is well documented with the sub prime mortgage market and US housing providing most of the impetus. While the US has a heavy influence on share prices around the world, the Australian economy is being driven increasingly by demand from Asia and China, particularly for our natural resources. Most analysts’ assessments is that the fundamentals of the Australian market are still quite sound.

It is timely to remind investors not to panic in these situations. Investments should be seen as a long term proposition that will have its ups and downs.

For those investors with available funds to invest, this dip in the markets can create excellent opportunities to invest at very favourable prices, but again, with a long term perspective.

We are endeavouring to meet with all of our new clients over the next few months to review your strategies and will be able to update you on developments as they arise. However, if you are concerned with your investments, please feel free to talk to one of our Financial Advisers to give you some solutions and peace of mind.”