Tuesday 21st August 2007
Despite the poor performance of the stock market, investments remain profitable in the long-term, it has been suggested.
Barclays Wealth argues that those prepared to buy into the stock market in its current weakened state could find their investments worth more in coming months.
The advice follows the worst fall in four years for the FTSE 100 on Thursday, August 16th.
But already the index is beginning to recover, climbing 205 points to 6,064 the following day.
According to Barclays Wealth, this may be ascribed to the number of investors looking to enter the market at its low point in order to profit as it recovers.
"With the FTSE leaping up again on Friday, our clients have clearly seen this as an opportunity to get back into the market," explains managing director and head of Barclays Stockbrokers Amy Nauiokas.
Meanwhile, equity strategist at the firm Henk Potts suggests a far-sighted approach to investments from those looking to profit from the stock market.
"Successful equity investment has always been about fighting through short-term volatility to take advantage of long-term out-performance," the advisor states.
Those less willing to take on the risk of investing in the stock market may wish to obtain a cash individual savings account (Isa).
While some Isas are linked to stock market performance, a cash Isa typically provides a fixed rate of interest on deposits.
However, Abbey warns that some carry restrictions - such as penalties for withdrawing money or notice periods of up to 30 days.
"We urge savers to fully use their Isa allowance to ensure they minimise their tax bill," says Abbey head of savings and investments Reza Attar-Zadeh.
But he adds: "Savers could end up paying to transfer out their money, or be subject to time locks."
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