Over the last two weeks we have focused on the volatile market but not really touched on the value in this. The volatility has caused share prices of the largest companies in the UK to move much more than would normally be the case. Some investors have used this as an opportunity to trade in and out of shares, which is a risky game to play but one which can pay off handsomely if the timing is right.

Under normal circumstances investment should be seen as a long-term concept, but with prices swinging violently it is easy to see why people are drawn in to gamble on short term moves.

Without wishing to sound like a broken record, there is still potential for new lows and investing remains risky – however, there are undoubtedly bargains around at the minute.

With the benefit of hindsight, in a few years time it is likely that many current share prices could look like being at real bargain basement levels.

Some companies will undoubtedly fall victim to the current economic conditions and in some cases shareholders will be left with nothing.

However, it is often said that markets are driven by fear and greed and at the moment the former has taken a firm grip on investors.

There are a number of interesting investments around and, for instance, those looking for income could do worse than having a batch of blue chip shares.

Historically many people have held banking shares which have always paid decent dividends to provide a good level of income; however, it looks likely that many of the large banks will not pay a dividend for the next two years.

Three FTSE 100 companies worth considering and paying a good dividend are BT Group (10.8per cent), Marks and Spencer (9.25per cent) and BP (6.3per cent).

Overall there remain uncertain times ahead. It is certainly still too early to call the bottom of the market given the challenges facing the world economy.

Looking further ahead, current valuations on many shares look to represent good value and those with a greater appetite for risk are already starting to put money into the market. Trading volumes have picked up recently and although there is a cloud of doom and gloom over the City at the moment, seasoned investors such as Warren Buffett are making selective investments which may look like a smart move in years to come.

  • WARNING: Opinions expressed are the writers’ judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.