Seasoned investors and fund managers are constantly taking action to protect their portfolio. That can mean moving cash out of risky markets or moving into safer cash havens, such as bonds. It's essential to diversify and not back just one investment opportunity, which is what funds are all about. By avoiding having all your savings in one basket - or share - then you avoid falling prey to the worst volatility of stock markets.
He advises people to have a portfolio you can stick with through thick and thin, diversified across regions and sector, and that includes a percentage of government bonds to dampen the risk. They have no more of a clue than you do," he cautioned. Mr Mould conceded that it has been hard to find a decent return in with interest rate cuts, falling returns from National Savings products and lower Government bond yields. But if you put your money o verseas, the story could have been different.
The UK is preparing for the worst. Another factor was an oil price war between Russia and Saudi Arabia, following their failure last week to agree a deal to curb output and stabilise prices, which have been hit by a fall in demand due to the virus outbreak. Sky's business presenter Ian King said: "This isn't the global financial crisis redone, because banks are in a much more stable position than they were in In some cases like the Eurozone and the Bank of Japan, they're in negative territory.
Andrea Cicione, head of strategy at TS Lombard in London, said: "The shock to oil compounds what the coronavirus is doing to the global economy. Watch Live. Coronavirus: FTSE in biggest fall since financial crisis on outbreak fears One analyst described it as Black Monday, adding: "If you thought it couldn't get any worse than the last fortnight, think again". Sharon Marris News reporter JournoKiwi. Banks and miners led the fallers in London as the pound hit a five-year low against the dollar.
Thomson Reuters was the only company not to drop in value today, closing 1p up. Valuations go out the window, sentiment rules OK," Buik said. Yesterday, in a further sign that the wider economy was being pulled into the crisis, shares in General Motors and Ford plunged on Wall Street over fears that the troubled automotive industry may not survive the downturn. The latest Libor figures, released before noon, showed that banks were still very reluctant to lend to each other.
Investment guru Jim Rogers today criticised the political response to the crisis, warning that attempts to rescue "incompetent" banks would simply drive up debt and inflation. Martin Slaney, the head of derivatives at financial spread betting company GFT, said markets were suffering "vicious sell-offs". It closed down 9.
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