Investors Should Not Let Last Weeks Stock Market Fall Put Them Off, Says Geoff HO

Savers should not allow last week's fall in prices and political uncertainty to scare them off

Investing in the stock market has never been risk free, but savers should not allow last week's fall in prices and political uncertainty to scare them off.

On Friday, the FTSE 100 index of leading shares closed at 7323.98, down more than 100 points from midweek, as turmoil in Donald Trump's administration and the terror attacks in Barcelona had investors selling equities and scurrying to the safety of gold.

On Friday, the FTSE 100 index of leading shares closed at 7323.98, down more than 100 points

Markets in the UK, Europe and Asia missed out on the boost that US shares received in the form of Trump's notorious chief strategist Steve Bannon being forced out.

While there are a number of ongoing factors that will affect stock market sentiment, the simple truth is that for most people there are not that many viable alternatives to shares.


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In short, equities are the only game in town for savers looking for capital appreciation.

Buying and holding for the long term, riding out temporary volatility, is usually the best bet for savers, but that is not the same as closing your eyes and hoping for the best.

Savers should regularly review their investment funds and holdings in individual companies to determine if they are suffering from temporary performance issues or if they are losers that need to be binned.

Doing so will not eliminate the risks inherent in stock markets, it will help mitigate them.