21st August 2015
The FTSE 100 has fallen to a new 2015 within an hour of opening this morning, adding another twist to the rollercoaster year.
The blue chip index fell to 6,286.95 within the first hour of trading this morning. The previous low was registered on 15 January when the main index hit 6,298.
It then passed the 7,000 mark on 20 March and since then it has dipped into ‘correction territory’ with falls of 10%, the worst performance by the index in seven months.
Maike Currie of Fidelity Personal Investing said the FTSE 100 ‘has been on a dramatic rollercoaster rise since the beginning of this year’ but investors can benefit.
‘While this will spook some investors, it is important to remember that the FTSE 100 is not a reflection of the domestic economy, but rather a reflection of a handful of sectors like mining, oil and gas which account for about a quarter of the value of the index and they have performed poorly as commodity prices have plummeted,’ she said.
‘We have enjoyed a bull market for a number of years now, and as bull markets mature, volatility tends to rise. With the world’s largest economy, the US, moving towards an interest rate rise, choppier market conditions were always on the cards as investor angst mounts and many choose to cash in.
‘A far wiser approach would be to follow Warren Buffett’s advice: “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it”.’