Investors warned over future drops

Fri, 17 Aug 2007

Investors could find that their stock market interest drops further in value as the current market volatility continues, it has been claimed.

After a 400-point fall in the FTSE 100 this week, those looking to secure their assets should take steps to make sure their investments are not jolted by further dips, said Edward Jones.

The investment specialist offered advice to those likely to be affected. Tips included reviewing the diversification of one's equity portfolio and focussing on the elements one has control over.

In addition, laddering one's fixed-income investments and checking the asset allocation to ensure that fixed income is adequate could be vital, noted the company.

Edward Jones commented: "While we don’t know which way shares are likely to move from day to day, we think the drop is an unpleasant reminder that stock market volatility is a normal part of the investing process."

Nick Sparks of F&C Partners recently stated that many investors are currently selling out of panic, which is leading to a number of bad transactions. This will lead to hedge opportunities presenting themselves in good time, the analyst believes.

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