Tag: market volatility

Ruth Sullivan

Stay focused

Stay focused

Sun and sand make their siren call in August, tempting investors to a remote island or perhaps a crowded European beach. After all, summer tends to be a quiet time for stock markets with low trading volumes, or at least that’s what holidaying investors like to think.

But what happens if unexpected economic news or currency trends trigger sharp stock market moves, asks Colin McLean, managing director of SVM Asset Management? It has happened before. This time two years ago, world markets were in turmoil as the credit crunch began to bite, and August was an abysmal month for hedge funds as they hit summer blues and most hedge strategies failed to perform.

In July and August 2008 there was a sharp market rotation from resources to financial stocks, while this summer’s surprise is a continuing strong recovery in commodity prices, driven by encouraging growth in China, Mr McLean reminds us.

And today Barclays unveiled interim profits of nearly £3bn, helped by BarCap, the bank’s investment banking arm, while equities rose to the highest levels of the year.

But whether the markets head north or south, Mr McLean recommends staying cool and avoiding any hasty decisions. So just in case there is a really big surprise over the next few weeks, shake the water out of your eyes, make sure your laptop screen is not obscured by the sun, and take a deep breath before pressing send.

About the blog

FTfm is no longer updated but it remains open as an archive.

FTfm's specialist writing team offer their insights into the global fund management industry.

About the authors

Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.

Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.

Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.

Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.