Whether you’re investing for the next 10, 20 or 30 years, history suggests that time is on your side and that the returns from investing for growth are likely to reward the volatility you endure along the way.
Time is on your side
Remember back to when you originally put your investment strategy together? You probably identified some financial objectives that were years into the future. You might have worked out that the appropriate strategy to meet those long term objectives was to invest in growth assets, such as shares. This was because despite any short-term volatility, they are still the a great vehicle to give you the increase in value you need to meet those objectives.Nothing has changed; despite the sustained volatility, growth assets are still an excellent choice for long‑term growth.
When is a crisis not a crisis?
When it happened 10 years ago.
The chart below also highlights the long-term benefits of patient growth investing. Each of the market crises shown below – including the 1987 Stockmarket crash, Tech wreck, Credit crisis and Iraq invasion – were world-changing events that saw stockmarkets plunge and investors wonder whether their capital would ever recover, just as you are probably wondering now. Given time however, companies managed to adapt to the new world order and got back to making money for their investors. They will do so again.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.