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  • It's now time again

  • for our finance and economics expert Brook Grant

  • to come and give us the latest developments in finance.

  • Last week the troubles facing Chinese markets

  • began to have a ripple on effect across markets globally.

  • I began asking him if the troubles facing the Chinese markets

  • had any impact on local markets.

  • Firstly the market here shrank by three percent,

  • whereas China's had contracted by 15%

  • over the course of a single week.

  • This week it has started to recover slowly.

  • So for people who have invested in the NZ share market,

  • what should they do with what they've invested?

  • Should they leave their chips in or take the money?

  • It's a constantly changing environment

  • as conditions for business and investment differ

  • every week and month.

  • Your financial goals and obstacles may change also.

  • What you should do is review the company shares you have

  • to see if they are still performing well and then consider

  • if they are still suitable in your investment portfolio.

  • Secondly, review your own financial aims and obstacles.

  • I would encourage you to seek out an authorised financial adviser

  • to help you.

  • You've advised previously that before investing

  • we need to consider it carefully.

  • Can you elaborate further?

  • There are a lot of things to consider

  • such as what is your investment horizon,

  • i.e. when do you think you want to get your money back.

  • If I was a young adult I would take a long term approach,

  • as I would forwent the funds for 10 to 20 years or longer.

  • So, I would take a look at those types of investments

  • that would offer greater results but also come with greater risks.

  • Why? Because if my investments came into trouble

  • I would have time to recover.

  • That's different for older people.

  • There's also another consideration

  • are you a patient calm and composed person?

  • Ask yourself -

  • if you saw company share prices climbing and falling all the time

  • would you be able to sleep?

  • If you couldn't,

  • then I would say that investing in shares possibly isn't for you.

  • Another idea to consider, what are your financial needs.

  • For those in their golden years a bank deposit can be useful

  • as you would gain interest

  • and that can be added to your pension.

  • So, you need to consider your goals and requirements

  • and what's right for you.

  • So in summary we should consult an authorised financial adviser

  • before making an investment?

  • Yes definitely!

  • Brook Grant, thank you.

It's now time again

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