View more on these topics

Panic selling gets grip on markets

The stockmarket saw the biggest fall since 9/11 this week as the FTSE 100 index plunged as low as 5,339 on Tuesday morning, wiping over £77bn off share values.

The FTSE 100 index fell by 5.5 per cent from 5,901 to 5,578 on Monday.

Panic selling saw the index fall to 5,339 after the markets opened on Tuesday morning before recovering to 5,707 later in the day.

Between December 21 and January 21, the index has fallen by nearly 13 per cent from 6,406 to 5,578.

In a shock move on Tuesday, the US Federal Reserve cut interest rates by 75 basis points from 4.25 per cent to 3.5 per cent on Tuesday in a bid to improve market confidence.

Leading fund managers say this week was the worst case of panic selling they have seen in years.

Cazenove co-head of multi-manager team Marcus Broo-kes says: “When the markets opened on Tuesday morning, it was the most panic I have seen in five or six years but it stabilised back from that level.

“There will be a persistent weakness in the markets for the next couple of weeks. What we are seeing is a mid-cycle slowdown. The probability of a recession has risen.”

Fidelity head of investment strategy Michael Gordon says: “My suggestion is that inv-estors do nothing. All too often, private investors are sucked into a market at its peak and then exit at the bottom. Tempting as it might be to withdraw money when markets drop sharply, this merely crystallises an individual’s losses.”

F&C head of asset allocation Paul Niven says: “We expect a recovery in stockmarkets and risk assets in general over the coming months.”

Aon Consulting senior consultant and actuary Marcus Hurd says: “Based on market movements over THe past week, pension schemes have lost over £40bn in a week, which is equivalent to wiping out all the gains that were made in 2007.”


A shaw thing

Sam Shaw is a reporter on Money MarketingHaving just about persuaded Sumus chairman Paul Bradshaw not to pimp me as the wife-to-be of a certain mutual friend of ours (I think…), I wound up whisky-ing into the early hours of Saturday morning following the Falcon conference, with my partners in booze being none other than […]

Sub-Sahara duo from Cru

Cru Investment Management has set up two sub-Saharan Africa products investing in the agriculture and food produce sectors.

Aifa wants fee on frivolous complainants

Aifa is calling for the Financial Ombudsman Service to charge complainants who bring cases with no merit against advisers.In its response to the Hunt Review, Aifa says a radical overhaul of the FOS structure, process and charges is needed to make it more transparent, accountable and easier to do business with.Aifa says the rules allow […]

FSA ad seeks successor to McCarthy

The Treasury is advertising for a successor to FSA chairman Sir Callum McCarthy who is due to retire in September.Many in the industry believe the FSA will employ an external candidate following the internal appointment of Hector Sants as chief executive.The advertisement in the Financial Times says applicants should be able to demonstrate a proven […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm