A disappointing start to 2016, but no need to panic

It is never a nice feeling when markets go through periods when they fall; and it certainly does not help to settle the nerves when we see sensationalist headlines like ‘RBS cries “sell everything” as deflationary crisis nears.’ (Daily Telegraph) or ‘Worst start to market year in two decades’ (FT.com).

To feel unsettled is natural; to panic and sell out of equities is an unreasonable overreaction to the normal workings of the market.  Remember that there are many analysts and economists who do not hold these views, but headlines such as ‘Markets might go down or up, or sideways, who knows?’ are hardly going to make the front pages.

Download the full report here: A Bad Start to 2016

Also download our ‘Quarterly Market Metrics’ report here: Quarterly Market Metrics December 2015