Keep calm and carry on

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The sudden change in the investment climate shouldn’t cause SMSF trustees to panic. Rather, they should see it as a chance for a useful check on how well their investment strategy is working.

Steady as she goes

First, there’s a chance that the worries about the world economies and the role of central banks will prove overdone. The sharp reaction by uneasy markets to Ben Bernanke’s comments was inevitable – any indication on the possible ending of quantitative easing was bound to provoke concern.

Second, no one can actually be sure where the stock market is headed or the likely exchange rate of the Australian dollar. Those who claim they do know are over-stating their competence; those who believe the economic commentators are forgetting their past history of forecasting.

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