FOR many, the recent gyrations on the sharemarket have come out of the blue. 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. A rash of uncertainties prompted the correction not just a single factor.
Aussie shares Australia's market was also overvalued, though not as much as overseas. However when global markets fall we are also affected. But if you believe the Aussie economy will grow, 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. It would help if China did more to stimulate its economy as well as manage the correction in its market.
interest rates The Reserve Bank has plenty of room to cut interest rates but it doesn't need to now. Rates will remain low for some time to come.
the Aussie dollar The Aussie dollar is likely to hover around US70Â¢.
motorists The good news for motorists is 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 wake up 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 buying opportunity.