Posted inAnalysis

ANALYSIS: Volatility here to stay in the age of the ‘Toblerone’ market

And so, while our favourite confectionary loses its peaks so does our stock market with the FTSE 100 having another wobble today, presumably on the back of some trivial political matter across the Atlantic.

Does this mean you should be taking a bite into this weakness or, like the new Toblerone, are we expecting things to, well, fall a bit flat?

Since June’s EU referendum, you could say the path of the FTSE has in some ways resembled the traditional Toblerone, albeit with an upwards slope.

 

Having fallen to below 6,000 by 27 June, the index was up past 6,500 by the end of that month. We saw another slip at the start of August before threatening the 7,000 mark a couple of weeks later.

Fast forward to mid-September and worries about the pound saw £50bn wiped off the FTSE 100 in three days, before an all-time intra-day high of 7,129 was achieved on 11 October. That brings us to last week’s fall, and today’s Trump slump.

Is volatility making you feel uncomfortable? Currency woes aside, the bad news is we ain’t seen nothing yet.

For all the bluster around Brexit, the latest legal challenge means we are no closer to knowing exactly when Article 50 will be triggered.

 

Part of the Bonhill Group.