Is It The End Of The World As We Know It?!

Date: August 16, 2019:

Well the ever reliable and completely un-emotional media networks would certainly have you believe that. This morning I’ve heard everything from – 

“MASSIVE STOCK MARKET CRASH” to ” BUCKLE DOWN – THE RECESSION IS FINALLY UPON US”

Many that I’ve spoken to recently will know that this “minor” correction has been coming for some time now and has actually provided a really good entry point for some clients to either (a) get into the market or (b) deploy some more cash and buy at comparatively better prices. In short, this is the opportunity we’ve been expecting for some time. Is it the end of the world? hmmmmm…..ok let’s have a look at this one month chart (below) to see what the media (yes David, I’m talking about you mate) financial guru’s are talking about when they say “billions wiped off the ASX overnight” or “super funds wiped out”  

Looks about right? well yes but we’re talking about a much expected re-valuation of prices in a market that was a little over excited. A bit like some media financial experts. Will it drop further??? maybe…. but probably not much if it does.

So how do we look in the overall scheme of things? well we all know that investing is for the long term right? the problem is that no matter how long term we think we’re thinking, short term things like this always have a tendency to freak people out. The media know this and are happy to spread the fear…ops…sorry the word!

But lets put this into context…

With the exception of the findings from the Banking Royal Commission back in December which caused another “end of the world” event, we haven’t done too badly as you can see from this chart of the ASX 200 going back just 5 years. In fact we’re actually not that far from our highest ever numbers. I’m not sure we’ll ever hear ol’mate ever say “billions goes onto the ASX” though…. just doesn’t seem to have the same ring to it really!