Stockmarket Falls: What Action Should Investors Take?
August 16th, 2007
Markets remain unsettled and our original view of a potential fall of 10-20% is happening. Naturally this is unsettling for investors who may be panicked by the movements and wonder what action they should take.
Having spoken once more to the UK experts within the last 24 hours, we believe that the FTSE could fall further, potentially to somewhere in the region of 5400-5700, which fits in with our projections. Therefore this does not change what we have been saying, just ask yourself whether you will need the money to be accessible within the next few months and if so, you need to look at the matter more seriously. However if you are a long-term investor, as should be the case, then there is no indication that a sale would be good idea, despite these testing times.
We suggest simply sitting tight, waiting for the volatility to ease and then looking for the market to gain strength. While we wouldn’t suggest that you should be investing large amounts of new money at this point in time, there will be some opportunities coming up, perhaps relatively quickly, and we will keep reporting on these developments.
Author: Philippa Gee
August 16th, 2007
Category: Investments.
