Recent Market Volatility

Global equity markets sold off sharply last week. Market commentators are struggling to identify a specific reason to explain these falls, and there are many to choose from: rising US Treasury yields, fed moving faster, global trade concerns, Saudi Arabia going rogue, Trump “winning” and many more. We have known most of these things for some time - they did not simply suddenly appear last week.

The key question is, Does this matter?

It may do if you are a short term speculator, but not so much if you are a longer term investor. There is often a lot of “noise” in the market which can distract investors from making good decisions. Sharp market falls can provide better entry points for those willing to take the longer term view.

The below video shows what happens after a large fall