How to deal with market volatility

We're bound to have days where the share markets wipes billions of dollars off and your superannuation balance drops.

When you see this drop, you might panic and decide to switch your funds to something more conservative – like cash.

The problem with this is your making important financial decisions based on emotions and not the facts. You’ll see other people selling and you may instinctively follow – even if it’s not necessarily in the right direction.

This is often a mistake because by panic selling you are locking in losses and breaking the number one rule of investing – buy low, sell high.

Instead, it is much better to base your investment decisions on facts, not emotions. Which likely means hanging in there until your super bounces back and maybe even see this as an opportunity to buy more (you might even be able to claim a tax deduction in the process). After all, we all love picking up some bargains & paying less tax.

By doing this, you could maximise your money and have more choices in retirement.

So the next time you see the share market drop or a decline in your super, don't panic or act with emotion, but instead focus on the facts, your long-term objectives & your personal circumstances.

If you want our free guide for how to handle and even benefit from market downturns … then head over to the 'Ebooks' section of the Blogs page and grab your free copy!

General Advice Disclaimer This is general advice only and does not take into account your particular objectives, financial situation or needs. Before acting on any advice you should consider its appropriateness regarding your objectives, situation & needs.