Last Thursday the FTSEE100 suffered the second biggest one day fall ever, at one point it was 33.5% down from January. Over the week it was down 16.97% with every other world market also down. You do not need me to tell you that was a direct result of the Coronavirus plus the oil price collapse.
I am not writing about this to emphasise the bad news as that is well documented in all the media, but to try and help you see the light at the end of a very long tunnel. The world’s most successful investor, Warren Buffet or the sage of Omaha as he is called, has an axiom that you should be fearful when others are greedy and greedy when other are fearful. In other words, at times like this there are deals out there for those who are looking for opportunities.
At this time all of us are either nursing losses or reductions in the gains we have made, and as long as we hold our nerve, we will not crystallise the loss. I know that this is something that I have said before, but it is a truism. There will be an upturn, I cannot say when exactly, but it will come.
Looking back the crash in the fourth quarter of 1987 when the FTSEE100 fell 30%, it ended the year higher than it had been at the beginning of the year. I was ploughing this same furrow then and saying the same thing” DO NOT SELL” I’m pleased to say that all but one of my clients stood firm. The one that did not, lost a lot of money.
As I said last week please do get in touch if you want to talk through where we are now, be assured I am always happy to talk to my clients. If you phone the office and I am not available I will call you back within the hour.
So, to the markets
|January 2nd||March 9th|
|FTSE 100||7604||5054||Down 33.53 %|
|DOW JONES||28584||23185||Down 18.9%|
|S&P 500||3261||2555||Down 21.64%|
|HANG SENG||28543||23063||Down 19.2%|
|CAC 40||6037||3774||Down 37.49%|