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A week of heavy falls for the FTSE 100

The FTSE 100 fell nearly 3 per cent today as concerns continued to escalate over the eurozone debt crisis and the strength of the US economic recovery.

The blue-chip index fell sharply in early trades losing as much as 3.5 per cent by 8.40am, only to rebound after US unemployment figures were better than expected. The US economy created 117,000 jobs in July, according to the US Labor Department. The overall unemployment rate in July fell to 9.1 per cent from 9.2 per cent.

At close, the FTSE 100 index stood at 5247, a fall of 2.7 per cent for the day. It has fallen nearly 10 per cent since Monday morning.

Asian markets had slumped overnight with Japan’s main index down 3.7 per cent and Hong Kong’s 4.6 per cent lower. In the US, the Dow Jones fell 4.31 per cent by its close on Thursday.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Just goes to prove the “tongue in cheek” industry saying that the value of your investments can fall as well as plummet! But, hey, when we hit the bottom, whenever that is, it should be a good buying opportunity? Anyone who took heed of the market warnings about a fortnight ago and liquidated to cash should do very well!

  2. Why the great surprise??
    I couldn’t understand why the market kept rising in the face of such appalling fundamentals accross the globe.
    20% off everything would be about right.

  3. Ah, but just imagine when this happens and a NEST pension holder is in a tracker fund. No one to ask or advise him/her.

    Do you recon there will be wholesale opt outs?

  4. And for those who dont have anything, they wont lose anything. You cant have minus Zero

  5. ‘Ah, but just imagine when this happens and a NEST pension holder is in a tracker fund. No one to ask or advise him/her’.

    And presumably nobody to complain to either? Wonder how the Govt will construct the link to IFAs so we have to foot the bill?

  6. “Ah, but just imagine when this happens and a NEST pension holder is in a tracker fund. No one to ask or advise him/her.”HK
    There is more than one index. Some are going down, some are going up. Show me the so-called fee based adviser whose clients’ portfolios are making money right now!

  7. Anonymous | 5 Aug 2011 9:39 am

    Wonder how the Govt will construct the link to IFAs so we have to foot the bill?

    Don’t know, but they will, guarantee it!

  8. I cannot believe some of the comments above from so-called professional advisors, as we all should know the stock market fluctuates and sometimes crashes. If clients have put money away in equity linked investments they should all be aware of the risks involved and of course short-term fluctuations like this can easily reversed themselves.

    I would agree with some of the comments above that this is an excellent buying opportunity. I would hope that so-called professional advisors would have more constructive advice then simply trying to point score against a government initiative to get people to save more. After all this is probably going to be good for us in the long term, as we all know people will always need advice, it is just advisers need to start thinking out of the box rather than sticking to the old ways.

  9. The ame has gone
    It’s time to hang up those BOOTS and say COBBLERS

  10. To Ken and others

    Sure. But with an adviser you have some to call to be reassured or to have your hand held. You won’t get that with NEST so the uninformed (and remember this woebegone scheme is supposed to attract the lower end) will no doubt panic and head for the exit – only to presumably lose out on pound cost averaging with the wonderful passive funds.

    Trustnet research has finally blown the myth about trackers. Active funds do better over 5 and 10 years of the research period.

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