5 steps to deal with market volatility
By Kirsten Hastings, 7 Feb 18
With low volatility having been the norm for nearly three years, the sharp drop experienced by global markets earlier this week awakened some fight or flight responses. AJ Bell offers five lessons to help investors cope with market volatility.
Russ Mould, investment director at AJ Bell, said: “After a period of mill pond like calm, volatility surged back into global stock markets over the past few trading days, to test the nerves of investors for the first time since 2015.
“The fact that the global sell off has halted, at least for now, suggests investors have quite sensibly not hit the panic button yet but they will be on high alert and will understandably be monitoring the situation very carefully.
“In these circumstances there are five lessons worth remembering, all of which can be useful when it comes to asset allocation, portfolio construction and investment strategy going forward.”
Click through the slides above to see what the lessons are…