stock marketToday has been dubbed Black Monday, caused by “The Great Fall of China”.

Stock markets across the world have fallen sharply as fears of a Chinese economic slowdown continue.

London’s FTSE 100 index closed down 4.6% at 5,898.87, with major markets in France and Germany down by 5.5% and 4.96% respectively.

In total, £73.75bn was wiped off the FTSE 100 as a result of Monday’s falls.

Wall Street’s Dow Jones initially fell 6%, but recovered to trade just 0.8% lower.

At one point it fell below 16,000 for the first time since February 2014, while the technology-heavy Nasdaq index was 1% lower, recovering from an earlier plunge of 8%.

Shares in Asia were hit overnight, with the Shanghai Composite in China closing down 8.5%, its worst close since 2007.

Ok, so how will this affect your investments? You may see a drop in the daily values but as non of our clients are fully invested in any particular market you certainly won’t feel the full effect of the drop. Also, none of our clients are fully invested in equities ( stocks and shares), the bonds and cash within the portfolios will cushion the blow.

How will this affect your long term financial plans? Well it shouldn’t is the simple answer. Stock markets crash at fairly regular intervals. It’s nearly 7 years since the last one and look at how well everyone’s investments have done since!

My advice is as always, don’t panic. The latest crash shouldn’t affect your long term plans. Please read this

I will of course keep you updated should anything change.