FTSE opportunities for long-term investors

Trading volumes in London are far outstripping those seen during the dotcom frenzy, despite share prices still being below their last bull-market peaks. Average monthly turnover in FTSE 100 stocks so far this year has been £187bn, 65% higher those seen in 2000. "Shares are simply being traded more often," explains Tony Tassell in the FT. A greater volume of purchases by hedge funds and other very active investors accounts for up to 50% of market volumes. Increased share buybacks and derivatives-hedging have also contributed. But the presence of many investors with short-term agendas is creating distortions, says fund manager Ed Burke of Invesco Perpetual. This will "present opportunities for investors who take a longer-term perspective".

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.