This is an update from Schroders that you may enjoy.
At this time I feel it is good to point out that less than 15 months ago the Australian share market closed at 5533 points on Dec 17 2018. Today it closed at 5370 points so a little lower but not much lower.
It was uncomfortable on that day in December 2018 and that was due to USA China impending trade wars. No one seemed to worry as much as we were preparing for Christmas pandemonium rather than Corona Pandemic. Supplies of toilet paper and hand sanitiser were plentiful and not in too many peoples shopping baskets at that time.
The severity of this downturn has been rapid however we always think about your portfolio on the basis that what happens to you if the share markets fall by 20-30% as that happens all the time and it has happened in the past two weeks. It is uncomfortable to look at your portfolio however falls like this have happened before, they will happen again, they are not a surprise or unexpected and we will always be working with you to ensure that your portfolio is appropriate at all times to reduce the impact to you of these sharp falls.
Whilst they are not a surprise or unexpected you never know when they will actually happen or what the trigger will be and that is the case here as Covid19 was unheard off 4 months ago.
The economic slowdown from sickness and quarantine is not able to be quantified as yet and that will take time to work through however if we can all do our little bit to avoid unnecessary contact with too many others and that may include playing more golf, taking a walk in the park or along the beach with perhaps a swim in the ocean, inside the shark net and between the flags of course.
These things will contribute to good health whilst helping to avoiding Covid 19.