Anthony Bolton, the outgoing head of Fidelity’s Special Situations fund, and one of the most respected fund managers in the City, said investors “should not panic” despite steep falls in the FTSE index of blue-chip shares.
The three-week drop in the FTSE 100 was offset only on Friday after the US Federal Reserve cut the rate at which it lends to banks by 0.5 per cent ”“ a move that led to shares in London rising over 200 points in afternoon trading.
Mr Bolton said: “My advice is not to panic. But it is going to be a difficult few weeks for the market….
Other leading economic strategists echoed Mr Bolton’s comments that markets would remain extremely volatile.
Robert Talbut, chief investment officer at Royal London Asset Management said: “We still don’t know how serious the problem is. We have had no clear confessions from institutions.”