Volatility in global stock markets
Posted by: Duncan Orr ">Duncan Orr, on February 23, 2018.
Here’s one final word on the recent volatility in Global stock markets.
As always, Carl Richards put this into context with one of his graphics and a few words…
Normal Can Feel Scary…
Imagine being in a boat in the ocean on a very still day. No wind. No swell. The water is as flat as a mirror. The calm goes on for a just long enough for you start to feel like it’s normal. Then when a small wave comes, it feels huge, and regular waves feel enormous. As scary as it might feel…remember waves are normal. Occasional storms are normal. And the last thing you want to do when you get into one is abandon ship.
UK FTSE All-Share Stock Market Index
Additionally, take a look at the chart below produced by JP Morgan which illustrates the returns of the UK FTSE All-Share Stock Market Index (Grey Bars) every year since 1986, with the largest market fall (from top to bottom) in every year shown with a red dot and number.
The key to successful investing isn’t predicting the future, it’s learning from the past and understanding the present.
In ‘Principles for successful long term investing’ J.P.Morgan present six time-tested strategies for guiding portfolio’s through today’s challenging markets and towards tomorrow’s goals.
- Invest for the future
- Cash is rarely king
- Compounding works miracles
- Volatility is normal
- Staying invested matters
- Diversification works
Please contact us if you have any questions regarding your financial planning strategies . You can call us on 01825 76 33 66 or complete a contact form.