Warning correct, despite recovery

Through August and September there was increased turbulence in equity markets and many took it as a sign that a sustained downturn was imminent.

But then the markets recovered in October. New Zealand equities were up 13.31% in the month, leading the international pack.

Only one developed market, Luxembourg, experienced a further slump in October.

Adviser Janine Starks said it was right for advisers to prepare their clients. "I don't think they were being too hasty, as they weren't telling people to sell, they were pre-empting the usual client squawking when the markets fall. Most mature investors know the drill."