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Investing in Times of Uncertainty There is no doubt that the pandemic, the invasion of Ukraine and the cost-of-living crisis have resulted in market volatility. Economic and geopolitical events always prompt investors to question whether now is a good time to invest or to remain invested.
It is important to remember that some market volatility is inevitable; markets will always move up and down. As an investor, putting any short-term market volatility into historical context is useful. This chart of the FTSE 100 since inception, details a series of significant events over the last 35 years or so. Despite a variety of market shocks and rebounds, the index still has a long-term growth trend.
1997-1999 ASIAN FINANCIAL CRISIS
7000 2020 COVID-19
6000
ONGOING BREXIT UNCERTAINTY 1995 BARINGS COLLAPSE
5000
2015-2016 OIL PRICE CRASH
2000-2003 DOTCOM BUST
4000
2016 BREXIT REFERENDUM
2007-2008 GLOBAL FINANCIAL CRISIS
3000
2000
1987 BLACK MONDAY
1985
1990-1991 GULF WAR
1990
1000
1995
2000
2005
2010
2015
2020
2023
Chart: FTSE 100 since inception to April 2023, source Yahoo and Trading Economics
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
INVESTING IN TIMES OF UNCERTAINTY