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.