Friday 11th July 2008
Investment advice provider Edward Jones suggests that a bear market need not be a bad thing for long-haul share dabblers.
The stockbroking firm notes that bear markets occur regularly but that the economy typically rebounds eventually.
But lower share prices do allow for investments to be made by those with the funds to do so, the company adds.
Guidance from Edward Jones suggests: "Ignore predictions of gloom and doom ... stay invested in a diversified portfolio.
"Patiently add equity investments that have fallen in price."
Anyone looking to a 30-year investment plan is reminded that history suggests five to six bear markets will occur during that period.
Previous guidance from the firm recommended retaining confidence despite headlines in the media predicting a downturn in the economy.
Edward Jones asserted that such slumps are typically resolved quickly compared with the sustained periods over which the economy as a whole usually grows.
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