Is the stock market a good place to spend 2008? - Investments - News - Moneyfacts


Is the stock market a good place to spend 2008?

Is the stock market a good place to spend 2008?

Category: Investments

Updated: 31/10/2008
First Published: 31/07/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

You may be wondering if this is a good time to invest or where the stock market is headed.

If so, Edward Jones has some answers for you - the same ones we've always had.

Prudent investing depends on a strategy that includes buying quality equity investments and holding them for the long term - in other words, time in the market, not timing the market. Your strategy also should include diversification.1 Diversification involves investing in companies in different industries so that your success is not tied to a single industry's performance.

If you're concerned about investing in 2008, think about the reasons that kept others from investing in years past. Although past performance is no guarantee of future success, hesitation can be a costly decision. The table shows what £10,000 invested in common shares for the years noted would be worth today.

You can probably think of a reason not to invest in 2008. 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.

£10,000 Invested on 1 Jan.

Value Today2


Global energy crisis

I'll wait until I know everything is OK.



Falklands War

Now is not the time for me to be in the market.



Black Monday

I was out of the market.



Sterling crisis, Britain drops out of the ERM

I'm afraid the economy will suffer.



Sept. 11

I'll wait out the war on terror.



Iraq War

I don't want to be in the market right now.



Credit crunch creates market volatility

I'm definitely holding on to my money for a few years.


Sources: Global Financial Data, Bloomberg and Edward Jones

1 Diversification does not guarantee a profit or protect against loss.

2 Based on the FTSE All-Share Index. Assumes reinvestment of dividends. Ending values as of 30 April 2008. The FTSE All-Share Index is an unmanaged index and cannot be invested in directly. Past performance is not an indication of future results. Figures do not include fees or commissions, which would have a negative impact on investment results.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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