Stock market chaos: investors keeping calm – poll
A poll of loveMONEY readers shows most have avoided the temptation to sell off shares since markets plummeted, with a fair few actually increasing holdings.
It’s been an incredibly volatile few weeks for stock markets as the Coronavirus pandemic wiped billions off the value of some of the world’s biggest and best-known firms.
In the face of such sharp falls – the FTSE 100 is down 30% in the last month, although it has been calmer in recent days – we wanted to know how loveMONEY readers are responding.
We polled those of you who are investors to find out how your portfolio is changing as a result of the crisis.
Was it time to sell? Were there bargains to be snapped up?
Here are the results, based on almost 200 votes received between Tuesday and Wednesday this week.
The vast majority (59%) of you have taken the view that now is not the time to panic or make changes. After all, investing is a long-term game and staying in it for a good few years will help you ride out any huge drops.
Speaking of which, new research out from investment firm AJ Bell this morning highlighted how stock markets typically take around 650 days to recover from a bear market.
Now that’s just a rough estimate based on past crashes so it’s in no way an indication of what lies ahead, but it does help remind people that markets generally do recover – eventually!
Investors who have reacted
Not everyone has decided inaction is the best option. Some 9% of those who responded have sold off at least some of their holdings.
A third of these, 3% of the total, have sold off a significant part of their stock market portfolio.
Interestingly, a far bigger chunk have taken an optimistic view of the current situation.
Almost one in five (19%) of you have snapped up some more shares, while a further 9% have ‘significantly’ increased your holdings.
To be clear, we’re not saying either the bulls or bears are right, merely highlighting what you’ve all been up to since the Coronavirus stormed into town.
Finally, if you want to know how the pandemic is affecting all areas of your finances, please take a look at our guide to the Coronavirus and your money.
As always, the information included in these articles does not constitute regulated financial advice. You should seek out independent, professional financial advice before making any investment decision.
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