Question

The Australian share market has risen considerably since the S&P/ASX200 index closed at 4546 on March 23. Using the content covered in the subject, do you believe that now is a good time to invest in a diversified portfolio of Australian shares, such as the S&P/ASX200 index? Why or why not?

Answer 1

Answer:

The Australian S&P/ASX 200 index revised significantly from its past level 4546 on March 4546 and this "V" formed recuperation is sharp. In any case, we need to remember that the significant explanation behind the amendment in the market due to coronavirus and lockdown which slowed down financial action around the world. When the opening of the economy began market started in recover mode. Be that as it may, then again, coronavirus spread and no of cases rising day by day around the world. So we need to remember plausibility of the second wave of spread of coronavirus. Market will stay in general unstable.

So the most ideal approach to contribute right currently is partitioning investment sum into equivalent 10/12 parts and continue investing into an diversified portfolio in the following multi year. It will resemble dollar-cost averaging and exploiting generally overall instability and limiting the abrupt risk of down turn.