Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.
The past year has been nothing if not interesting for investors. After one of the quickest bear markets in history in February and March 2020, shares have reversed their losses in record time too. For investors looking to benefit from the market’s volatility, it’s been a year of opportunity.
Increased investor appetite has led to record trading volumes too. Volatility and trading activity go hand in hand. So, what has the impact of choppier markets been for investors this year? How has it affected their ability to trade? And how have they been able to navigate the markets through this turbulence?
To explore these questions, I picked up with Alex Skrine, the head of electronic trading at Winterflood Securities, one of London’s leading market makers.
He explains the link between volatility and trading volumes and tells me how market participants like Winterflood are able to keep the lines open for investors when things get a bit more hectic.
He talks about how a company’s size can affect the ability to deal in its shares and the price at which you can do so. And he sets out how investors can protect themselves from the unexpected.
Important information: Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
Where next for Kingfisher shares as Screwfix-owner gives update?
Can the lockdown DIY frenzy sales boom persist in a re-opened world?
Stop worrying about a crash: the bull market has further to run
Should investors really worry about inflation, Covid and US tapering?
Where did UK consumers spend their money in August?
The UK ventured out last month as retail sales fell