Is the stock market a good place to spend 2008?

Category: Investments
Date: 7/31/2008 11:16:40 AM

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.

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.

Related Links:

• Compare Investments
• Guide to Investments