An investment expert is calling for people to stay calm and focus on the long term as the market situation remains "volatile" amid the coronavirus outbreak.
Global sharemarkets, including New Zealand's, had another volatile week as investors struggle to make up their minds about the impact of the coronavirus outbreak.
But "if your plan hasn't changed, stick to the plan", was the advice of Managing Director of Index Investment Strategy for S&P Dow Jones, Dr Tim Edwards, this morning as he talked to TVNZ1's Breakfast about the impacts of Covid-19.
"It's really one story that's driving the markets right now and that is the virus," he said, but added "I don't think there really is a historical comparison that's particularly useful right now in terms of markets that's related to a disease."
Dr Edwards said the volatile market doesn't seem to be changing anytime soon, but said importantly people should be asking themselves if their long term investment strategy had changed.
"I would be doing no service to your viewers if I came in and said "now's the time to panic, do something" because the studies show that's one of the worst things you can do.
"Really just focus on the long term, if your plan hasn't changed, stick to the plan," he said.
"Often there's a pressure to feel like you need to do something and actually the data shows the best thing to do nine times out of 10 - absolutely nothing."
Mr Edwards also advised people against trying to time the market themselves, but to instead focus on the long term.
However, when asked if people at retirement age already should be worried, Mr Edwards said people hopefully would have reduced a lot of the risk already, but if people are close to retirement and have a lot of money still invested in the stock market, he advised talking to a financial adviser about how to reduce risk.
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