Volatility returns: Fund managers reveal how they are playing turbulent markets

Time to put cash to work?

Fund managers are viewing the recent market upheaval as a potential buying opportunity, but are divided on whether to plough into equities now or wait and see if further turbulence would offer a better chance to put cash to work.

Markets have suffered a sharp sell-off in the past couple of weeks on concerns over tightening central bank policy and higher-than-expected inflation. The Dow Jones was hit by its worst points drop in its 122-year history on 5 February, closing 4.6% down at 24,345 points, while in the UK, the FTSE 100 sunk 3% to 7,176 on 6 February before rebounding. US stocks then fell further into correction territory last Thursday, with the Dow Jones industrial average dropping 4.15% to 23,860 points.  Volatility also returned with a vengeance as the VIX or 'Fear' index soared 115% to above 50 befo...