Most Irish investors have been much calmer in response to the latest upheavals in the market than was the case in the 1987 crash. True the international markets bounced back this time for the moment at least but that was not clear early last week when things were looking very nervy and markets around the world were tumbling in response to events in the Far East and nerves on Wall Street.

One reason for the steadier nerves this time around is that investors who took a long-term view in the face of all the market falls of the last few years have done well. Markets have been through a few upheavals since 1987 notably in 1989 and in late 1992 but those who have held on have still seen a return on their investments well ahead of almost any other source of investment.

Whether holding on this time is the correct strategy remains to be seen. Most market analysts believe that it is and that even though further volatility is on the way, the long-term return on equity holdings will remain strong. This may well be the case, although it cannot be guaranteed.

Another reason for the calmer reaction in Ireland this time around is that those investing in the markets are now generally getting better advice and buying investments or products which suit their particular needs.

Ten years ago was the heyday of the unit fund, when many people including pensioners for which it was too risky a course were piling into these funds, which had been offering very strong returns. When the market turned in 1987, many of these unit-fund holders understandably panicked and sold out, often sustaining heavy losses.

These days there is a much wider range of products on offer, including the many tracker bonds which offer a mixture of a guaranteed return and a benefit from the markets which they are tracking. New Ireland this week launched the latest of these funds, which offers no less than nine options varying the level of risk and reward.

But investors need to be very clear about the mix of reward and risk they want in a tracker bond, or whether they might be better off going for some other product. Trackers will only offer strong returns if markets keep going up.