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December started strongly for the FTSE 100 leading index of shares. But the early Santa Rally quickly fizzled out like a cheap sparkler as fears over the global economy resurfaced.
By the end of the last full trading week of 2024, the Footsie slumped to within a whisker of 8,000 points. This was the index’s worst week in the calendar year and a troubling omen heading into 2025.
Multiple dangers
Stocks have collapsed for a multitude of reasons. More recently, worries over a US government shutdown due to budget issues spooked investors. But there are other lingering dangers like stubborn inflation and its impact on interest rates, potential new US trade tariffs, and a prolonged slowdown in China’s economy.
Yet despite these threats, I’m not panicking. As someone who invests for the long term, I’m largely unconcerned by volatility on financial markets.
I’d rather see the…
