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Making sense of the market slump

Article image for Making sense of the market slump

Roger Montgomery joins Ross Greenwood in the studio following a tragic blow to the market.

Roger puts into context what the slump means for investors.

“Over the last two years, the market’s risen by almost 30%, so a 3% drop, in the context of large rise like that, doesn’t suddenly make everything cheap.

“Just because prices have gone down 3%, doesn’t mean they’re any closer to their values. It just means they were less expensive than they were before.

Roger tells Ross it’s not the dollar value, but rather the percentage that matters.

“It’s not the point move or the dollar value, those numbers are always going to get bigger. It’s the percentage that matters.

Listen to the full interview below

Brooke Corte
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