Last night we saw the most restrictive measures ever placed on a community in Australia – the lockdown in Victoria which includes a curfew from 8pm in the evening to 5am in the morning.
You might be wondering what this means for the sharemarket, and indeed the future. The answer is ‘Who Knows’. Although, over the next days and weeks we’re bound to be bombarded with experts who will have their say on what’s going to happen and what we should be doing.
Let me put this in perspective for you.
There are thousands of economists, epidemiologists and market strategists that are all offering their opinions. How many of them correctly forecast what’s happened with the markets and the pandemic this year? The answer is none of them. So why would we give a scintilla of credibility to anything that we’re going to hear now? The answer is ‘We Shouldn’t’.
We all know that fear is a strong emotion that causes us to do things that we otherwise wouldn’t. But if there’s one thing that you should be doing right now – It’s to hurry up and do nothing!! By all means consider your long term circumstances and if anything has changed consider what needs to be done with your strategy. But apart from that? Most likely turn the TV off and don’t buy the newspapers.
The one thing markets hate is uncertainty, and the only certainty at the moment is that there is uncertainty. But like everything – this will pass.
As usual, make sure you reach out to our team if you have any concerns or want to discuss your personal circumstances.