In 1987 I was in London working for Scotia McLeod selling shares in Canadian listed businesses to UK and EU insurance companies and banks. The UK trading market had just been de-regulated, which saw a slew of Canadian and US banks flood into London. If anyone can remember, October the 19th saw the DOW lose 22.6% (about $500b) in one day (Black Monday). Â It wasnâ€™t my fault honest!! I did wonder about that button I pushed though.
In the last week after the Brexit vote, UK bank shares have plummeted (Bank of Ireland dropped 20%, Barclays at one stage down 32% but ended up down 17.4% etc). And in the past year Australian banks have lost about a third of their value as Chinese markets slowed.
Crazy right? Â As far as the small business owner is concerned, nothing happened. We get up, open our doors, place the shingle on the roof and keep trading. These huge drops are purely the result of fund managers swirling their money electronically around the planet (and spooking smaller investors to then get out while they can, which reduces the price even further).Â
So don’t feel sorry for the banks; they will rebound and share prices will eventually go back up.Â
And if you are working in a bank in the small business space, remember to look after your small business customers who pay their fees, donâ€™t complain, donâ€™t ask for anything and are busy. They are the cornerstone of your recovery.Â
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.