Skip to main content

Cross Contagion

9 March 2020 |Investment strategies
Learn how unlocking the value of your investment portfolio using a margin loan can help build wealth and achieve your financial goals on a chart background.

Cross Contagion

9 March 2020 |Investment strategies

Equity markets react to concerns about COVID-19 pandemic

Markets are reacting to news that COVID-19 seems to be spreading outside of China, a precondition for calling it a pandemic, and the second-order impact on the Australian economy.

Stories about pandemics can be scary. Smart investors will remember their goals and investment strategy before getting caught up in daily headlines.

Firstly, put the recent share market fall into context. Some sectors of the Australian economy may experience a hit if fear of pandemic spreads. But investors who have a medium or long-term investment horizon need to look at business prospects over the next five to ten years.

Few bad news stories come without opportunities, and even long-term investors may be able take tactical advantage. Prepared investors may be able to ‘buy on the dip’. Some investors who hold shares that have increased price, for example gold miners, may want to tilt their portfolio towards investments that may have succumbed to short term panic selling.

No one can predict the unpredictable such as a pandemic. Tactical manoeuvres to take advantage of short-term market jitters are not suitable for every investor. But smart investors know to be prepared for opportunities.

A margin loan gives suitable investors access to additional investable funds and the flexibility to adjust their portfolios without the need to sell long-term investments.

To find out more or to discuss how we can work with you and your clients, call the team at Leveraged on 1300 307 807.

Things you should know

Gearing involves risk. It can magnify your returns; however, it may also magnify your losses. Examples are for illustration only and are not intended as recommendations and may not reflect actual outcomes. Past performance is not an indication of future performance. The information provided in this document has not been verified and may be subject to change. It is given in good faith and has been derived from sources believed to be accurate. Accordingly no representation or warranty, express or implied is made as to the fairness, accuracy, completeness or correction of the information and opinions contained in this article. To the maximum extent permitted by law, no entity in the Group, its agents or officers shall be liable for any loss or damage arising from the reliance upon, or use of the information contained in this article.

Issued by Leveraged Equities Limited (ABN 26 051 629 282 AFSL 360118) as Lender and as a subsidiary of Bendigo and Adelaide Bank Limited (ABN 11 068 049 178 AFSL 237879). This information is correct as at the time of issue, and is for general information purposes only. It is intended for AFS Licence Holders (or authorised representatives of AFS Licence Holders) only. It is not to be distributed or provided to any other person.


Related Topics

Connect with us

Bendigo and Adelaide Bank acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of this nation and the Traditional Custodians of the land where we live, learn and work. We pay our respects to Elders past and present as it is their knowledge and experience that holds the key to the success of future generations.

Leveraged Equities Limited ABN 26 051 629 282 AFSL 360118
© Copyright 2024 Leveraged Equities Limited