What's going on?
The FTSE has seen unprecedented volatility over the last few weeks; the financial turmoil has caused governments to nationalise banks; people are worried that the world economy is heading for recession. The stock markets initially did not respond positively to the 'bail-out' packages, but there are now signs of recovery.
What should you do?
Markets may be jumpy but there are good reasons not to sell your investments if you don't need your money immediately and plan to hold for the long term. Don't hurry to sell funds due to the financial crisis, but stay invested and, where possible, take advantage of declining markets to invest more at lower prices. Equity markets are forward-thinking and inclined to improve before the 'real economy', so there should be some good gains to be made. The solution to secure investments is, as ever, to invest for the long term and not to put all your eggs in one basket. If you take this view you will be in the best place to ride the storm!
Seek advice
Before you proceed, do give CFM a ring for individual advice. Whilst this gives you a brief overview of the current financial landscape, it should not be read as a recommendation as it does not take into account your individual circumstances and attitudes.