Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Beta (finance) wikipedia , lookup
Syndicated loan wikipedia , lookup
Private equity secondary market wikipedia , lookup
Financialization wikipedia , lookup
International investment agreement wikipedia , lookup
Business valuation wikipedia , lookup
Market (economics) wikipedia , lookup
Investment management wikipedia , lookup
Mark-to-market accounting wikipedia , lookup
Lattice model (finance) wikipedia , lookup
Financial economics wikipedia , lookup
Land banking wikipedia , lookup
investments How market volatility can work to your advantage wHy inve s n ow t ? when stock markets are moving up and down so sharply it is natural for investors to be concerned that they will ‘get their timing wrong’, investing one day only to see share prices fall significantly the next. of course, investors cannot consistently and successfully time the markets. nobody knows what the stock market will do next week, next month or next year. But that does not matter if, for example, you are saving for a pension and do not intend to retire next week, next month or next year. taking a long-term view is what matters most. one way to reduce the worry of investing at the wrong time is to invest on a regular basis. By dripfeeding your money into the market you have the potential to buy more units when share prices are falling. when prices recover, you’ll have more units with a higher value. Units bought with a monthly investment of £100 £2.00 Rising Market Volatile Market 52 Unit Price £1.50 £1.00 100 92 85 79 73 65 69 61 55 58 Investment B 100 150 50p 50 Investment A 150 200 250 200 300 350 350 300 7 8 250 0 1 2 3 4 investment a total value of units after 6 months total units bought after 12 months total value of units 5 6 Month £721.74 839 £1,678 9 10 11 investment B total value of units after 6 months total units bought after 12 months total value of units 1 12 £385.71 2,700 £2,700 How ma rk et volatility c a n wor k to your a dva ntage Investments Investors will be concerned about the extreme volatility we’ve seen recently in world stock markets. But by saving regularly or phasing a lump sum investment from cash into the market over a number of months it is possible to benefit from the short-term ups and downs and, at the very least, reduce the worry about investing at the wrong time. Why invest now? Neither professional nor private investors can get their timing right every time. If you are worried about investing a lump sum just before prices fall, a simple way to reduce the risk of bad timing is to make regular investments. Given current market volatility, now might be a good time to start. Members of the St. James’s Place Wealth Management Group are authorised and regulated by the Financial Services Authority. The St. James’s Place Partnership and the title ‘Partner’ are the marketing terms used to describe St. James’s Place representatives. St. James’s Place UK plc: Registered Office St. James’s Place House, Dollar Street, Cirencester, Gloucestershire, GL7 2AQ, United Kingdom Registered in England Number 2628062 www.sjp.co.uk SJP3113-VR1 (10/08)