Successful booster vaccination roll-out has led to an increase in movement, trade and spending.Reasons to feel hopeful about the stock market: While most restrictions in the UK have now been withdrawn, some markets continue to wobble because of concerns about new waves of coronavirus. We explain how to invest in volatile times later on in this article.Īlso bear in mind that stock markets have been very volatile since the start of the pandemic. With that said, it’s never a good idea to panic and sell stocks when the markets are falling because there is a danger that you could end up crystallising losses. As a result, lots of investors sold their stocks. The crisis has caused huge amounts of uncertainty as investors worry this will spill over into the businesses they are invested in. The last major sell-off was in March over concerns about Russia’s invasion of Ukraine. Meanwhile, the S&P 500, which measures the performances of the largest US firms, fell 11%.The FTSE 100, which measures the performance of London-listed companies, dropped 7%.Major stock markets have plunged in June over fears about surging inflation and the impact on the global economy. If you’re new to investing, you might want to read our beginners ‘ guide to investing first. You can buy investment funds or use a robo-adviser so that an expert investor can select shares on your behalf.Selecting and monitoring individual shares is time-consuming.Don’t buy shares in a company just because someone said you should (always do your own research first).However, companies that are essential to our day-to-day lives are less likely to struggle, such as supermarkets, banks and manufacturers of consumer staples. Now that we are in a cost of living crisis, people have less spare cash to spend, meaning some businesses will suffer, particularly those luxury brands. For example, during the pandemic, technology companies tended to well while travel firms suffered. Listed companies regularly release their financial results which can give you a picture of the health of the company.Īlso bear in mind that some sectors tend to fare better than others depending on the external circumstances. It’s important to do your research into each company you want to invest in. In fact, it could be an opportunity to bag some bargains.īut it all depends on what you buy: while the future of some companies look positive, the same can’t be said for all businesses. The FTSE, which measures the performance of the largest listed companies on the London Stock Exchange, plunged 7% between 8 June and 20 June.īut just because the stock markets are falling doesn’t means that it’s a bad time to buy shares. If the recent sell-off in the FTSE 100 is anything to go by, many investors don’t think it’s a good time to buy shares.
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