How low can markets go and what can you do?

Whichever way you look at it, things are looking grim. Markets have a long way to fall and consumers are about to go into hiding. So what can you do? Faint glimmers of hope remain in the Far East.

Just four weeks ago, we said that the next leg down for the stock markets had started, and that has clearly proved to be the case. The FTSE 100 has held up a little better than most, not yet violating its March 2008 low nor its January 2008 low. Other key UK markets have broken down. For example, the FT30 - an index of 30 UK equities selected to represent the UK economy - and the FTSE 250, which more accurately represents the UK stock markets, have both made new lows.

In America, the Dow Jones Industrials and the S&P 500 have both violated this year's lows as have many of the European markets, including the Dow Jones Euro Stoxx 50. We don't think for one moment that this primary bear market will end until stock markets are much, much, much lower than now; probably below the levels set in 2003 which, to remind you, was for FTSE 3278 and for the Dow Jones 7417.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
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

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

Sign up
MoneyWeek

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.