Rotorua investors - don't panic, the market isn't going to crash.
But if you have cash, sit tight and wait.
That's the advice from two of Rotorua's leading financial advisers today following the worst financial crisis in decades on the world sharemarket, as Wall St suffered its biggest plunge since September
11, 2001.
BDO Spicers national chairwoman Judith Stanway, who is the BDO Spicers Chartered Accountants Rotorua partner, today told The Daily Post New Zealand would obviously feel the pinch but was in some ways insulated because New Zealand was not as exposed to financial, oil and mining markets as the United States and Japan.
"It's not looking good and it does mean the recession is going to continue longer than we thought. But we are a little bit insulated from it."
She said expectations the property market would start to turn were perhaps premature. "I don't think the property market has bottomed out yet.
"There was talk it was starting to turn and there was more activity but I would say that this is going to hold that a bit more as well," she said.
Mrs Stanway urged people with cash to sit tight and wait.
"You wouldn't put it in the stock exchange at the moment."
Spicers senior investment adviser Allan Williams said he was pleased to see New Zealanders hadn't rushed out and sold their shares. "It show Kiwis are maturing."
Mr Williams said investors should not panic. "It's not going to crash. The New Zealand sharemarket is a lot different to what it was in 1987." He said if you won $1m in Lotto this week you should put $50,000 in investment markets each month for the next 12 months.
