Our View On Recent Stockmarket Falls
July 27th, 2007
We’ve been receiving a few calls this morning from clients worried about the falls on the stockmarket over the past couple of days.
As you may be aware, the FTSE 100 had its worst day in 5 years yesterday, and the FTSE 250 had its biggest fall in history. This may sound bad, but actually we welcome the movement! This is because we have all been expecting a fall for some time, and therefore we are glad that it has arrived so we can get it over with. Most experts believe that it will simply be a correction and will not cause long-term damage to investor’s portfolios.
This is exactly what you get with equities; movements down as well as up, and we are hopeful that once the falls are out of the way we can expect positive returns once more.
We cannot, of course, guarantee any of this, it may be that the falls last longer than expected, however the market is already up this morning, and we will remain positive until we have evidence to the contrary. There should be no panic selling, simply wait for these movements to settle down.
Author: Philippa Gee
July 27th, 2007
Category: Investments.
