This Is Money Show

Buy, sell, or hold? When stock markets take a tumble, it's decision time. Investors got a shock this week, when the prolonged period without a stock market correction – dubbed the Big Calm – came to an abrupt end. Many were not surprised by the fact that shares fell, after all warnings that a correction must arrive have not been in short supply. But what did catch them off guard was quite how hard they fell and that the only catalyst was the threat of slightly higher interest rates. On Wall Street, the Dow Jones dived 4.6 per cent on Monday, and then after a brief bit of mid-week respite, it tumbled another 4.2 per cent on Thursday. In the UK, shares also fell but not by as much, although some with more high-octane portfolios will be nursing bigger losses. So, is this just a healthy correction, or is it the start of something bigger? On this week’s podcast, Simon Lambert, Alex Sebastian and Georgie Frost look at why shares fell, what investors should do when markets correct, and whether ther