Hargreaves Lansdown Emma Wall: How should investors respond to economic crisis?

Recession worries

clock • 4 min read

It has been a bumper few years for markets – two “once-in-a-lifetime” events have altered trading behaviour, flipped us through multi super-cycles and coughed investors out the other end to higher interest rates and significant economic uncertainty.

Much like economic forecasting market outlooks are near impossible to get right with 100% accuracy. But there are patterns in market - and most crucially investor - behaviour. The two market disruption events in the last five years have shaped the current market outlook and investor confidence today. Over the past five years, despite a couple of wobbles, the US stock market has driven global market performance. It has more than doubled in the last ten years, resulting in a market cap almost the size of China's GDP - and about five times the size of the UK's GDP. Spot the Dog: Nu...

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