Thursday, 21st January, 2016

A ‘bumpy ride’ for stock markets in 2016 generates headlines globally

It has been a challenging start to the year for investment markets around the world. Markets have been unsettled by falling oil prices, the prospect of increasing interest rates in the United States and concerns of a weakening Chinese economy and its potential impact on global economic growth.

Since the start of 2016 the Australian stock market has fallen more than 8%1. US and European shares have lost over 9%2 and 11%3 respectively and Asian stock markets have declined by more than 6%4. These market movements have generated a number of headlines in the media and weighed down further on investor confidence.

We should remind ourselves, however, that we have seen steady investment returns since the lows of the global financial crisis in 2009, with both global and Australian shares growing by over 90%5 since that time.

Reacting to short term market fluctuations and news headlines may work against your long term investment goals

We understand that fluctuations in the value of your investments and the constant flow of negative investment news can be unnerving. There is a tendency to react to short term market movements but such actions may work against your investment goals over the long term. It is worth stating that market volatility is a normal component of the investment cycle.

It is important to stay focused on your long term investment objectives and review your investments periodically in the context of your investment goals. It also helps to know that longer term investment horizons tend to soften the impact of short term fluctuations in markets.

Superannuation is a long term investment to provide savings for our retirement. It is therefore important to consider an appropriate timeframe and a diversified investment portfolio to meet your investment objectives.

REST remains focused on achieving the investment objectives of our investment options

Our investment philosophy is centred on an active investment management approach. This means we regularly review and adjust our investment portfolios to manage risk as market conditions change and also take advantage of opportunities as they arise.

We believe that regardless of the behaviour of the markets, investing is inherently about managing uncertainty and risk and we continue to manage downside risk with the aim of meeting our long term investment objectives.

We are here to help

If you would like to talk to someone at REST for more information, please do call us on 1300 300 778 from 8.00am to 8.00pm weekdays. We would suggest that you seek advice before changing your investment strategy. Subject to the superannuation law, REST will pay for a member’s first super-related question over the phone with Money Solutions#, a team of financial coaches and planners, as part of your membership.

1 1 January 2016 to 20 January 2016, ASX200 Accumulation Index
2 1 January 2016 to 20 January 2016, S&P500 Index
3 1 January 2016 to 20 January 2016, Euro Stoxx 50 Index
4 1 January 2016 to 20 January 2016, MSCI All Country Asia (in AUD) Index
5 6 March 2009 to 20 January 2016, MSCI All Country World (in AUD) Index

#  Money Solutions Pty Ltd ABN 36 105 811 836, AFSL 258145. Money Solutions personnel are not representatives of the REST Trustee. Any financial product advice given by Money Solutions is provided under the Money Solutions AFSL. The REST Trustee does not accept liability for any loss or damage incurred by anyone as a result of using products or services provided by Money Solutions.
This information doesn’t take into account your circumstances. So, before acting on it, you should consider whether it is appropriate for you.  Before making a decision about your super, please read the relevant Product Disclosure Statement (PDS) available at or call 1300 300 778.  This information is provided by the issuer, Retail Employees Superannuation Pty Limited, ABN 39 001 987 739 as trustee of REST (Retail Employees Superannuation Trust ABN 62 653 671 394).