As stock markets plummet due to the coronavirus outbreak, an investment expert is warning there may not be a fast rebound for drops in New Zealand's KiwiSaver funds.
Fisher Funds chief investment officer Frank Jasper told TVNZ1's Breakfast this morning there was still a lot of uncertainty around the viruses impact on the stock market.
Stocks around the world plummeted yesterday, but some recovered some of that ground overnight.
Mr Jasper said it was natural for people to feel worried about the sudden drop in their KiwiSaver funds, but was warned them to brace for what could be a slow rebound.
He advised people to focus on the long term as it was still uncertain if a recession or longer recovery was likely.
"We don't know for certainty what the future could hold and things like coronavirus we know could get worse, the spat with the Saudis and Russia could get worse, that does mean that the markets could continue to fall," he said.
"What we do know though, and we can look back through 100 years of history, is that markets do eventually recover and sharemarkets are a great place to build long term wealth. But what's going to happen tomorrow, the next day or next week, or the month after I think it'd be very brave to guess."
Mr Jasper advised people to have the right strategy for their needs, recommending first home buyers in the next few years and people hitting retirement age or older to take less risk in their portfolio.
"You just don't have the time to recover from markets like this," he said.
"It's all about context, if you still have that long term time horizon, actually almost the worst thing you can do is start trying to change your settings and guess where the market's going to go next week, but if you are a lot older, if you are saving for your first home and you do have a big exposure to growth assets maybe it's time to think about that."
Mr Jasper also said people could talk to their KiwiSaver provider about what is right for them if they're unsure.
"Pick up the phone, send an email and talk to people even just to share your worries, it's a really good start to making great decisions."
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