Share prices see-saw: all part of riding the FTSE 100 roller coaster

Today, I watched as the FTSE 100 – and the share price of many of its constituents – fell, rose, and finish where it started again. All within a few hours.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.

Image source: Getty Images

The FTSE 100 sank to a five-month low earlier — plunging to 6,791 just before 9am — with the share price of a large volume of its constituents nose-diving

Having closed on Friday at 6,987.14, as I write (at 2pm on Monday) it now stands at… 6,987.18.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

I chose to highlight these three words in the opening paragraph as examples of fear-mongering rhetoric that, here at The Motley Fool, we strive to avoid.

Instead, we aim to be the calm and optimistic voice amid any chaos when it comes to the stock market.

Of course, this takes nothing away from many of the underlying reasons behind the Footsie’s turbulence right now. What’s going on in Eastern Europe is unimaginably awful, and like many I’m glued to news and updates from journalists far more knowledgeable about the situation than I am.

Where I hope to provide value to private investors is to simply send a reminder that, yes, the nature of the stock market is that it does have peaks and troughs.

We saw that in the first six hours of today.

But what’s so important is the ability to block out a lot of the noise — these emotive words that cause us to worry about our portfolios — and to take a step back.

And then another one.

Over one year, the FTSE 100 is currently up 4%.

In fact, keep going — zoom out enough, and you’ll see what I want you to.

That since its inception in 1984, the index is up by more than 500%!

However, let’s look across the Atlantic to see if we’re an anomaly. 

Year to date, the S&P 500 has cratered by almost 10%…

… but over the past 12 months, it’s up by over 13%.

Across the last five years? +82.5% as I type.

And almost 4,000% — Four. Thousand. Per. Cent. — since 1982.

I really can’t say it enough, so once again I’ll shout it loud enough for the people at the back.

Historically, the stock market goes up.

Don’t be fooled by any so-called market commentators who are trying to grab your attention by highlighting intra-day drops in share prices.

Please (please) instead, do be Foolish — paying special attention to the capital F! — and take a long-term view. 

In all honesty, I haven’t looked at my investing portfolio these past few weeks. I know there will be some ‘paper losses’ compared to when I did last check in.

But I have faith in the reasons I bought into these companies — not just tickers on an exchange, but actual businesses.

And because the research behind these stock picks uncovered growth potential that perhaps the market hadn’t priced into the shares yet, the investment rationale is largely intact.

I remain resolute that the current choppy market is being made seemingly worse by short-term traders.

Yet I’m a long-term investor. So I’m going to close my eyes and ears to any hype-driven oratory on “why we should sell all our shares and buy whatever’s being touted as the ‘right’ safe-haven investment instead”.

I hope you can, too!

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How I’d apply the Warren Buffett method to buying shares

Learning from billionaire investor Warren Buffett, our writer explains his own approach to investing in shares for his portfolio.

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

This dividend share yields under 1% — but I’d still buy it

This dividend share has a low yield. So why would our writer consider adding it to his income portfolio?

Read more »

Young lady working from home office during coronavirus pandemic.
Investing Articles

Looking for a good share to buy? Here’s how I do it

Here are two approaches our writer uses when hunting for a good share to buy for his portfolio to aim…

Read more »

man in shirt using computer and smiling while working in the office
Investing Articles

One cheap FTSE 100 share I’d buy for a new bull market

This FTSE 100 share is unloved and starting to look seriously cheap, says Roland Head.

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

How I’d invest £500 in UK shares in 2022

Investing a small amount of capital in UK shares can result in high commission costs. Zaven Boyrazian explains how to…

Read more »

Black woman using loudspeaker to be heard
Investing Articles

2 battered FTSE dividend stocks to buy in July!

I'm still searching the FTSE 100 for the best bargains to buy. I think these two big dividend shares are…

Read more »

Woman pulling baffled face
Investing Articles

Can I trust Lloyds’ 6.1% dividend yield?

The Lloyds' share price has sunk in 2022, causing the bank's dividend yield to leap. But can I really trust…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

3 top stocks to buy before the market rebounds

Edward Sheldon highlights three beaten-up stocks he'd buy before global stock markets stage a recovery from their 2022 declines.

Read more »