Coronavirus and your superannuation? Sydney financial planner says “Don’t panic and think long-term”
There’s nothing quite like a 7% drop in the market in a single day to spark widespread panic in the financial markets. It also doesn’t help that the media will pounce on these stories to get your attention.
Sydney financial planner, Martin Cossettini from Blue Diamond Financial isn’t going to tell you that the next few months won’t be painful, but he is here to hold up a light at the end of the tunnel.
Martin says that in dire times of doom and gloom, it’s long-term thinking that will get you through the tough times (pandemic or otherwise) with your investments intact.
With strategic planning and moving against the herd, you are far more likely to be in a better position for the time when people stop hoarding toilet paper and noodles, the markets stabilize, and the inevitable upward trend begins.
We asked Martin some of the most pressing questions facing investors today and to shed some light on what their next move should be – this is what he had to say.
Investing during the Coronavirus pandemic
Even when there isn’t a deadly virus blanketing the globe, Martin informs us that the share market has always experienced periods of volatility. However, panicking and selling off your investments so you can sit on the cash during the current crisis is not your best move.
Warren Buffet’s billion-dollar empire was created by buying when everyone else was selling. However, many people won’t be able to grow their portfolio.
Take care of your family and shut your eyes and ears to the shenanigans currently plaguing the stock market. History tells us the pandemic will pass, and the market will recover.
In the meantime, choose the most straightforward path, which is to do nothing. Nobody knows what tomorrow holds, except that if you divest, now, you will lose.
Martin informs us that Blue Diamond Financial’s strategy for their clients with large cash positions is to put money back into the market slowly.
“The lower the market goes, the less risky it becomes.”
“Remember the tsunami that destroyed a Japanese nuclear power plant in 2011. The event sparked a panic sell-off and put a lot of red in the share markets.”
Martin reminds us of the period following the catastrophic event when the market experienced growth – with some properties pushing into double digits.
Talk to your financial planner
Part of Blue Diamond Financial’s strategy is to create a diversified portfolio, with conservative investments offering some much-needed stability during these uncertain times.
To sum up, says Martin, fasten your seatbelts because it’s going to be a bumpy ride, but cool heads will prevail.
About Martin Cossettini from Blue Diamond Financial
Martin Cossettini from Blue Diamond Financial brings a unique wealth of financial advisory skills to the Australian market.
With over 25 years of banking and finance experience, with 15 years working internationally in London, he is passionate about financially educating individuals and families, whilst always placing his client’s best interests at the core of everything that he does.
Martin is based in Sydney’s Hills District, and is happy to travel to clients all around Sydney. He offers a FREE financial advisory consultation and aims to make your financial situation better than your present one.
Click here to see Martin’s Top 3 Local Choice profile.
You can get even more sound advice from Martin by visiting his page and check out his latest informative videos by clicking right here.
Other useful links:
Real Estate Buyers Agent Sydney