FTSE slumps more than 200 points
Thursday 16 August 2007
"The FTSE 100 slumped to its lowest level of the year as stocks were hit by a fresh sell-off following heavy overnight losses on Wall Street and in Asia...says Michael Hunter of the FT. More here.
Ongoing concerns about the health of world credit markets after the US subprime lending crisis continued to cast its shadow over global equities, dragging London’s leading shares 214.1 points, or 3.3 per cent, lower to 5,895.2
This is the first time the FTSE has fallen below 6,000 since March. It also takes the index into negative territory for the year, and more than 800 points below its year-high of 6,732.4 set in June. "
Ouch…if you are an investor, these numbers do not look attractive. Is it time to sell? Is it time to buy? What happens next? Will this fear cause property prices to fall? Will homeowners find it more difficult to sell their homes? Will jobs be at risk? Before we continue, let’s stop these ‘what if’ scenarios. There is no doubt that investing into the stock market over the short term is volatile. I read today that in the US, volatility was the highest for over 4 years. But investment is about the long term. Ask yourself some questions. Are companies that you invest into at risk of failure. Probably not. They are still providing goods and services. The issue is looking at your attitude to risk and making risk work for you, not short term market volatility. These fluctuations will always catch headline news, but by staying focused, you increase the chances of a fair return on your capital over time. If you are a little concerned, go back to basics and think about risk. Do not change your portfolio simply because of these market conditions, but by all means, allow these conditions to act as a catalyst to help you get your risk right.
posted by Murray Round Wealth Management @ 16:46,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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