Stock market movements and your superannuation

So, there's a few things to think about in this current environment. With your superannuation, it's a long-term investment. It's not about what you earn today, or this month, or even this year. It's about how you're going to grow your super over time. Now, there are going to be periods like this where there are big losses in the market. We've seen in the GFC in 2008, the Australian equity market was down around 38 percent, and now in 2009, it was up a bit over 40 percent. We saw similar behaviour during the tech wreck in the late nineties, we saw it during the European crisis in 2012. Big losses in markets are often followed by very strong gains. So, for a long-term investor, you need to be able to participate both in the downside, so that you can participate in the upside. Now for an investor, they should also consider what stage of life they're in. So, if you're
closer to retirement, perhaps you should have a more conservative profile because you need to draw down on that super over time. Now if you're a younger investor, in your twenties or thirties, and you have 20 or 30 or more years to go, you can withstand this volatility because you're going to make up for it over a longer period of time. But understanding the risk in your portfolio is very important.

Past performance is not a reliable indicator of future performance. This video is general in nature and hasn’t taken your circumstances into account. It’s important you consider your personal circumstances and consider speaking to a professional, before deciding what’s right for you. AMP Life Limited ABN 84 079 300 379.