Australian Elections and Markets
Over the last few weeks and in the coming days, it is likely you have or will have seen countless opinion pieces on what a change in government will mean for your investments. This article from Dimensional just prior to our election provides some context of the impact on our market locally and internationally.
While elections can have an impact, it is important to remember these key points:
- Investors invest in companies not political parties.
- The Australian market is 2% of the global market and our election result is not a focal point in the global stage right now.
- There is no consistent correlation between market movements and who wins an election.
There will always be events that impact markets around the world. It is important to cut through the noise and focus on what sensible action we can take – often in the case of investments, the most sensible action is to be patient, hold your position and remain consistent.
Read the full article here.