The FTSE 100‘s dropped 5% in recent days, lurching back to levels last seen four months ago. But it’s not alone. Global stock markets have slumped in recent weeks on fears of a recession in the US.
But I’d note that stock market wobbles are normal and relatively frequent occurrences. According to Oxford Economics, the S&P 500‘s faced a drop of 5% or more at least once a year for the past four decades.
Bear in mind that even drops of 10% are common. So although they can be uncomfortable, investors should assume they’ll happen.
As a long-term investor, stock market tumbles could be excellent buying opportunities.
It’s not without risk, but I’m keeping my eyes peeled for opportunities to add to my Stocks and Shares ISA once I save some cash.
Soaring to new heights
At the top of my list is FTSE 100 aerospace firm Rolls-Royce (LSE:RR.). I first liked this stock over a year ago when it started making…
