After falling more than 2% on Monday, FTSE 100 Is rebounding. As I wrote, the large-cap stock index rose 1.6% to 6,994.
As a long-term investor, I usually don’t worry about minor market volatility as we saw this week.but I Yes Always looking for signs that the stock market may be about to experience a real crash. Do I need to prepare for trouble in the next few days and weeks?
What happened this week?
Sell off on Monday orried that Covid-19 may cause more damage to businesses. But, in fact, I think Monday’s decline is actually the end of the sell-off, with many popular reopening stocks plummeting last month.
For example, jet engine manufacturers Rolls Royce And the owner of British Airways International Air Transport Association Both have dropped by 10-15% in the last month.Catering Group compass Also came down.
In my opinion, all we are seeing is the consolidation period following the strong rise of these stocks. I suspect that investors are realizing that they have been priced as perfect, and in fact, the full recovery may be gradual.
I expect further volatility in the next few weeks, but I don’t think these reopening stocks will cause serious problems.