![\"\"](\"https:\/\/www.redstarwealth.co.uk\/blog\/wp-content\/uploads\/Screenshot-2022-07-21-at-10.17.56-600x463.png\")
<\/h4>\nWhat is the FTSE 100 Index?<\/span><\/h4>\nThe Financial Times Stock Exchange (FTSE) 100 Index is the share index of the 100 companies with the highest market capitalisation on the London stock exchange. It can be used to draw comparisons with other countries, to see how a certain sector is performing in England compared to elsewhere. It is also a great indicator of investor confidence; if it falls heavily, confidence is down, and if it rises, there is less uncertainty amongst them<\/p>\n
However…<\/h4>\n
some areas experienced growth during the pandemic, such as streaming services and anywhere with adequate online systems. This highlights the complexity of investment; there is no perfect choice, but this is why it is important to diversify in order to spread out the risk<\/p>\n
Looking at the long term<\/h2>\n
The FTSE 100 Index still has a trend of long term growth despite these peaks and troughs in the market. This illustrates how important it is to look at the bigger picture when investing, rather than making decisions based entirely on short-term stock performance<\/p>\n
Uncertainty in the stock market can lead to panicked decision-making, but it is important to try to keep a level head. Investors shouldn\u2019t keep entering and exiting the stock market based on its short term performance. The market will always be subject to fluctuations, so if the price of a stock falls, it is more than possible that it will recover in the future. Holding onto your stocks in case the situation improves, rather than selling them at low prices when its value has fallen, is a great way of investing in the long-run<\/p>\n
The Financial Times Stock Exchange (FTSE) 100 Index is the share index of the 100 companies with the highest market capitalisation on the London stock exchange. It can be used to draw comparisons with other countries, to see how a certain sector is performing in England compared to elsewhere. It is also a great indicator of investor confidence; if it falls heavily, confidence is down, and if it rises, there is less uncertainty amongst them<\/p>\n
However…<\/h4>\n
some areas experienced growth during the pandemic, such as streaming services and anywhere with adequate online systems. This highlights the complexity of investment; there is no perfect choice, but this is why it is important to diversify in order to spread out the risk<\/p>\n
Looking at the long term<\/h2>\n
The FTSE 100 Index still has a trend of long term growth despite these peaks and troughs in the market. This illustrates how important it is to look at the bigger picture when investing, rather than making decisions based entirely on short-term stock performance<\/p>\n
Uncertainty in the stock market can lead to panicked decision-making, but it is important to try to keep a level head. Investors shouldn\u2019t keep entering and exiting the stock market based on its short term performance. The market will always be subject to fluctuations, so if the price of a stock falls, it is more than possible that it will recover in the future. Holding onto your stocks in case the situation improves, rather than selling them at low prices when its value has fallen, is a great way of investing in the long-run<\/p>\n