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Alex Riley is director of the London-based financial planning firm Bunker Riley.

The ongoing trials and tribulations of the global stockmarket are certainly a cause for concern. An explanation of the various reasons for the recent volatility are readily available elsewhere by more eloquent journalists, so I won't go into that detail here.

The reason for this short commentary is to provide some focus and reassurance to investors who have already arranged their portfolios with a game plan and asset allocation in mind. Investors need to remind themselves that in the short term, markets move, sometimes irrationally, based on news, spin, politics etc. But in the long term, markets usually return to the fundamentals. 

One example is Astra Zeneca, the FTSE 100 blue-chip pharmaceuticals company - is it really worth 10 per cent less today than it was at the end of July? Has there been a change in its fundamentals to cause this change over the last week? '’m not an individual stock analyst, but I would probably say no.

Talk of political wrangling in the US and Europe, sovereign debt issues and fears of further recession all contribute to the uncertainty, and it is this uncertainty that causes the volatility. Much like watching a horror film, it is the fear of the unknown that is the scariest part and our psyche goes into overdrive - it is not what is actually seen on screen.

At times like these, the herd panics and psyche takes over, but for investors there are a number of points to remember to help them try to stay sane, tune out some of the noise, and remain focused on their original objective.

1. If you have followed a financial plan, then sufficient levels of cash should already be held in reserve for shorter-term requirements. If this is the case, then you should not be dependent on access to your investment portfolio right now.

2. If you still maintain an investment horizon over a number of years from today, it is important to remember that it is the value of your investment in the future that is key and not the value today.

3. Making the assumption that your portfolio is falling at the same rate as the various global stockmarkets reported in the media also assumes that you are invested 100 per cent in those markets. In reality, most investors following an asset allocation plan will have capped exposure to the stockmarket. Therefore, if your portfolio is allocated 50 per cent stocks and 50 per cent bonds, then you will have approximately half the exposure to any stockmarket volatility.

4. Selling now would trigger an actual loss rather than what is currently a paper loss, and if you sold now, where would you put the receipts to enable you to recoup any losses?

5. Markets move quickly as we have seen in the last two weeks or so. If and when a recovery comes, it is also likely to be swift. So, market timing and trading in and out could leave you even worse off if you get it wrong.

It is perfectly natural and understandable to take fright from the current volatility. However, the key to traversing the current problems is to not panic, take a step back to calm your thoughts, remember your original reasons for investing, and only take action if is absolutely necessary for you to do so.

Sometimes it might even be worth turning the television off if it spares you from taking the wrong action.