FOR many, the recent gyrations on the sharemarket have come out of the blue. So what's going on and what does it mean for you? 
WHAT'S GOING ON?
Essentially, US and European markets became overvalued and now we are seeing the necessary adjustment. It wasn't one factor that prompted the correction, rather a rash of uncertainties.
AUSSIE SHARES Australia's market was also somewhat overvalued, though not as much as overseas. But, when global markets fall, we are also affected. But, if you believe the Aussie economy will continue to grow, then the sharemarket will also grow.
RETURN TO STABILITY?
US and European markets must become more fairly valued. That doesn't mean prices need to collapse - they can go sideways. And it would help if China did more to stimulate its economy as well as manage the correction in the Chinese market.
INTEREST RATES The Reserve Bank has plenty of room to cut interest rates if it needs to. But it doesn't need to now. Rates will remain at low levels for some time to come.
THE AUSSIE DOLLAR The Aussie dollar is likely to hover around the early 70s against the US dollar.
MOTORISTS The good news for motorists is that global oil prices are falling. So petrol prices could fall to the $1.10-$1.15 level.
PROPERTY MARKET If interest rates stay low and shares remain volatile then investors will favour property. But the sharemarket and currency volatility may also be a wake-up call to investors.
INVESTORSAll investors should take a close look at their investments. Those near retirement may need to get professional advice. Others may see the lower share prices as a useful buying opportunity.