Fool.co.uk: Impact of recent stock market volatility
David Kuo, Head of Personal Finance at Fool.co.uk, says: “Recent volatility in stock markets around the world has prompted investors to rush online for information about the stock market turmoil.“According to Hitwise, internet traffic to Fool.co.uk went up 11% on Friday 10 August as investors assessed the impact of share price movements on their stock market investments.
“However, investors must not forget that despite the recent falls, shares have still risen 70% since February 2003. Additionally, the main market indicator is four times higher than after the 1987 ‘crash’.
“Investors should also try to remember that crises often fizzle out and turn out to be nothing more than short-term blips. At Fool.co.uk we are continually advising investors to remain calm and invest for the long term. Consequently, people who are contributing into pension funds or investing regularly in index trackers should carry on doing so.
“It is all too easy to react to recent events, but remember that share investing is not designed to provide short-term instant gratification but long-term steady returns for the patient investor.”