Investment - Articles - Dramatic falls in global equity markets

 Ben Gold, Head of Investment, North at Xafinity Punter Southall commented that: “Yesterday (5th February) saw dramatic falls in global equity markets which have grabbed the headlines this morning. Falls of 1.5% in the UK yesterday were followed by overnight falls of over 4% in the US and even more in Japan. The US falls in particular are grabbing the headlines as they are the worst in a single day in 6 years.

 “Whilst somewhat unwelcome, let’s put this into context. UK equities have only fallen back to the level they were at in early December, and US equities have barely fallen at all since the start of the year. So 2018 is actually not that noteworthy as it goes, so far at least.”

 Ben went on to say “Let’s also remember that pension schemes are long term investors. They have typically made great efforts in spreading risk by diversifying and managing risk by hedging. So they are well set to ride out what may well be just a blip. Of course, trustees and sponsors should review their portfolio in light of current conditions, but there is no need to overreact.

 “These events are a great reminder of the importance of upfront contingency planning. Then it is far easier to keep cool heads now.”