I have talked about market falls in recent articles, but I don’t think I have pointed out the fact that this is not at all unusual after an event such as the Ukraine invasion. For those individuals who have recently invested and whose investments are currently in negative territory the situation can be daunting but understanding how historic events have panned out can help your perspective.
After 9/11 the S&P 500 (The Standard and Poor’s 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on exchanges in the United States) fell by more than 14%1. There has even been research2 that there was some unusual trading shortly before and after the event, including specific investments in American Airlines and Morgan Stanley. However, there is no proof that it was the terrorists who made these investments.
The FTSE 100 (a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation) was adversely affected after the London bombing 7/7, but not as sharply.
I have always said that one of the best ways we can help clients is by being a sounding board, and at times like this I think this is even more relevant. When the markets have gone down it is a particularly worrying time, therefore a simple conversation and informed reassurance can be invaluable. There is never a guarantee that markets will go back up and even if they do how long this will take. But as long as investments are retained they are only losses on paper.
So during these uncertain times if you do need to speak to someone please do not hesitate to pick up the phone today and we will be happy to talk to you.
1 Investopedia; 2Hugh McDermott(https://truthout.org/authors/hugh-mcdermott)
