Stock market performance in years of apparent crisis proves sensible long-term investors will always benefit, according to investment adviser Edward Jones.
The firm says prudent investing depends partly on buying quality equity investments and holding on to them – “time in the market, not timing the market”, it says.
Edward Jones says investors can probably think of dozens of reasons not to be in the stock market, as they may have done during the Falklands War and the 2003 invasion of Iraq, but that patience will reap reward.
It points out an investment of £10,000 in common shares made in 1977, at the height of the global energy crisis, would today stand at over £750,000.
The same amount during the ‘winter of discontent’ in 1978 would return over £500,000, it adds, while £10,000 in common shares in 1992, when Britain dropped out of the Exchange Rate Mechanism, would now be £45,453.
“You can probably think of a reason not to invest in 2008,” a spokesman says.
“Instead consider this: A buy-and-hold strategy that emphasises diversification offers an opportunity to build wealth over time, despite short-term market fluctuations.
“It was true several decades ago, and it’s still true today. That’s why we think the stock market is a good place for long-term investors.”
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