Stay Calm and Buy Stocks, says BlackRock

This stock market volatility provides opportunities to buy fundamentally attractive businesses whose share prices have been buffeted by recent events and headlines

BlackRock 19 January, 2016 | 1:46PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Mark Wharrier, co-manager of the BlackRock UK Income Fund, explains why keeping your head matters in an environment of volatility.

2016 has started with a bang. With Chinese stocks in freefall, rising geopolitical tensions, lacklustre PMI data and an unseasonably warm Christmas; broad swathes of the market are under pressure. The increased volatility we’ve seen is indicative of the panic felt by the market. In this environment, keeping your head matters. This volatility provides opportunities to buy fundamentally attractive businesses whose share prices have been buffeted by recent events and headlines. Level-headed analysis of the longer-term prospects of a company can determine whether any issues are enduring or temporary and therefore whether there is an attractive investment to be made.

While volatility is extremely uncomfortable, it can bring significant opportunity

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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BlackRock  has assets under management totalling $3.8 trillion across equity, fixed income, cash management, alternative investment, real estate and advisory strategies (as at 31 December, 2012).

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