SUPER funds have taken a battering in the past two weeks with almost all gains for this financial year swept away in a sea of red ink.Concerns about Greece leaving the eurozone has sent share markets from Frankfurt to Wall St into a tailspin and the uncertainty could last for months.
Almost $80 billion has been sliced off the value of Australia's top companies this month with super funds badly hit by the fallout.
Experts estimate that during the past two weeks, account holders with balanced investment options have lost about $200 for every $100,000 in their super fund this financial year.
Super funds are expected to suffer further losses as share markets remain volatile while Greece's problems remain at the forefront of depressed investors' minds.
Investors are paring back exposure to risky assets as concerns grow the Greek tragedy will spread to Spain - Europe's fourth biggest economy - and engulf its banking system.
Market watchers warn investor jitters will dominate for the next 18 months as Europe lurches from crisis to bailout without an ultimate solution in sight.
Locally, the benchmark ASX 200 index dropped 2.3 per cent yesterday - its worst trading session this year - with the resources-linked sectors doing it toughest on a day of declines.
European markets dropped a further 1-1.5 per cent on opening last night following a horror session the previous day.
The latest outbreak sparked by fears Greece will be evicted from the eurozone as European leaders scramble to stop the spread of contagion has also seen the Australian dollar drop to a new four-month low of US98.7c.
Westpac chief economist Bill Evans warned the next 18 months were likely to be punctuated by a series of mini-crises in Europe followed by bailouts.
"This is going to be a major rollercoaster ride for investor confidence,'' he said.
"But it certainly doesn't look good; the fundamental problems run deep.''
This is the third year in a row global stock markets have given up a strong start to the years in the April-May period with jitters about Europe's ongoing debt crisis sending investors looking for the exit. Those bouts of uncertainty triggered falls from their April peaks of 15 per cent in 2010 and 22 per cent last year.
But AMP Capital Investors chief economist Shane Oliver is upbeat that while it might feel like "groundhog day for investors'' there are some key differences.
"A stronger US economy, global monetary easing and cheaper share markets hopefully should help limit the downside in shares and help result in a better year end,'' he said.
"But further downside is possible for share markets over the next few months,'' Dr Oliver said.
SUPER funds have taken a battering in the past two weeks with almost all gains for this financial year swept away in a sea of red ink.
Concerns about Greece leaving the eurozone has sent share markets from Frankfurt to Wall St into a tailspin and the uncertainty could last for months.
Almost $80 billion has been sliced off the value of Australia's top companies this month with super funds badly hit by the fallout.
Experts estimate that during the past two weeks, account holders with balanced investment options have lost about $200 for every $100,000 in their super fund this financial year.
Super funds are expected to suffer further losses as share markets remain volatile while Greece's problems remain at the forefront of depressed investors' minds.
Investors are paring back exposure to risky assets as concerns grow the Greek tragedy will spread to Spain - Europe's fourth biggest economy - and engulf its banking system.
Market watchers warn investor jitters will dominate for the next 18 months as Europe lurches from crisis to bailout without an ultimate solution in sight.
Locally, the benchmark ASX 200 index dropped 2.3 per cent yesterday - its worst trading session this year - with the resources-linked sectors doing it toughest on a day of declines.
European markets dropped a further 1-1.5 per cent on opening last night following a horror session the previous day.
The latest outbreak sparked by fears Greece will be evicted from the eurozone as European leaders scramble to stop the spread of contagion has also seen the Australian dollar drop to a new four-month low of US98.7c.
Westpac chief economist Bill Evans warned the next 18 months were likely to be punctuated by a series of mini-crises in Europe followed by bailouts.
"This is going to be a major rollercoaster ride for investor confidence,'' he said.
"But it certainly doesn't look good; the fundamental problems run deep.''
This is the third year in a row global stock markets have given up a strong start to the years in the April-May period with jitters about Europe's ongoing debt crisis sending investors looking for the exit. Those bouts of uncertainty triggered falls from their April peaks of 15 per cent in 2010 and 22 per cent last year.
But AMP Capital Investors chief economist Shane Oliver is upbeat that while it might feel like "groundhog day for investors'' there are some key differences.
"A stronger US economy, global monetary easing and cheaper share markets hopefully should help limit the downside in shares and help result in a better year end,'' he said.
"But further downside is possible for share markets over the next few months,'' Dr Oliver said.
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