We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home.
This disappointing share price performance matters to more than just those who are actively trading the market. Millions of people will be affected because pension savings are typically held in stocks and shares.
Russ Mould, investment director at AJ Bell, said: “Whether you’re paying into a retirement savings pot through your workplace, or running your own personal pension, the drop in the market means your savings are worth that bit less.
“But this is not a time to panic. Stock markets go up and down, businesses go through good and bad cycles, and economic growth certainly does not travel in a straight line. The key is patience and hopefully the current state of despair will fix itself in time.”