Sharemarket volatility – friend or foe?
One day it’s up and the next it’s down. In recent times the share market has experienced a lot of volatility which leads to some very nervous investors. There are a number of reasons why volatility seems to be prevalent. Technology, for one, has advanced enormously. At the push of a button investors can now move money in and out of markets at any given time. These movements affect market values much faster than they used to in the past. Another reason is the actual volume of money that is moved in and out of markets. Currently we have a larger proportion of share market investors who want to maximise investment returns, for example, baby-boomers nearing retirement. It’s wise to note that not only does the share market experience volatility, in fact most investments do, including residential property and fixed interest.
The only reason you don’t notice the ups and downs of residential property valuations is that you don’t have someone knocking on your door everyday giving you a valuation (wouldn’t that be interesting!).
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