VolatilitySite_Learning

Tip of the day - Markets are cyclical. Whatever goes down...

...must come back up again.

Every market cycle – bull or bear – provides opportunities for us to improve our investment process, and the last few years were no exception. Following six years of solid growth by the Australian sharemarket, investors were reminded in 2008 that markets do in fact fall.

This we know: Markets follow cycles of ups and downs. What we don't know is their timing or duration.

The Australian sharemarket experienced strong gains in 2009 following the downturn which commenced in late 2007. The point is that markets have always recovered. Over the medium to long term, despite the ups and downs, the Australian sharemarket has returned positive results.