Yesterday the FTSE100 fell by 10% after Trump gave the most expensive speech in history, causing panic in global markets. This bloodbath came despite the reassuring stance of our rather smooth new Chancellor in Wednesday’s Budget, a few hours after the Bank of England cut interest rates to 0.25%. In the last month, the FTSE 100 has fallen by nearly 30%.
Let’s think about how bad this is with a quick history lesson.
Stock markets do not like uncertainty – fear has taken over here as a system which runs on Maths and equations doesn’t know what numbers to put into the formulae.
Said every teenager to their parents after their first love goes wrong. Said every investor watching their ISAs and pensions plummet. “No but this time it’s different.” Except it generally isn’t.
We have little idea of how this pandemic will play out and the miserable brigade are out in force. It’s hard. I’m trying to work out how to keep my 15 staff happy, well and productive. How to run a business remotely. Deal with clients. Absorb the lost short-term revenues. How I’m going to cope if they shut the schools. (Nightmare!!!!) I’m worried about my family. Am I going to have to cancel my Easter holiday? Do I have enough loo roll and pasta? You know. All the important stuff. And that’s just little old me. But the world is made up of billions of people like me who all have similar questions. It’s the lack of certainty and the lack of the solid toolkits to inform our planning which is so tough and creating so much unease.
BUT. And here it comes folks – the BUT. There is absolutely no point in running around like a blue-@rsed fly, panic-selling because it’s ‘Armageddon’. My friend asked me a few days ago if she should sell all her ISAs and investments. No!
Unless you believe that it’s the end of capitalism as we know it, there is no reason that solid companies like Unilever, Coca-Cola, Samsung or Apple should cost 20% less this week than they did last week. So I sit tight. And I keep calm and carry on. Because there will always be people who say that “this time it’s different”. But I don’t believe that it is. The markets have been over-sold and the markets will come back. Full stop.
We really want to know what you think. What is the mood amongst retail investors? What are you planning? I would be so grateful if you would complete our short survey, compiled for people with boredom thresholds as low as mine. Will take less than 3 minutes. It really helps us to understand the climate better – and we’ll report back next week and on social media.
Keep your nerve folks. Wash your hands. Lose your online trading passwords. And make sure there is enough wine in the fridge.
What is the mood among retail investors? What are you planning? We would be so grateful if you would complete our short survey, 3-minute survey to understand the climate better. We’ll report back next week.Take our 3-minute survey
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