Investors are likely to benefit from greater
levels of diversification and taking a long-term approach, one
expert has suggested.
Jason Butler, a partner at Bloomsbury
Financial Planning, said that for long-term
investments it makes little difference whether a market is
imploding or exploding.
Diversification and time are your two friends. If we knew
that returns were certain there would be no extra returns for
investing in risky
assets, he commented.
Markets are never certain and so they do experience
periods of instability and lack of confidence, Mr
Butler explained.
However, it is not worth worrying about short-term developments if
an
investor is taking a long-term view, he added.
In related
news, a recent survey by
Barclays
Wealth revealed that 40 per cent of
independent financial advisers questioned by the firm suggested
that market volatility would continue for between six and 12
months.
A further 17 per cent predicting that
financial turmoil would last for another year.
