Time for reflection… let’s look at the performance of the largest 750 companies listed on the UK stockmarket; FTSE All-Share Index from February 1955 to June 2011.
Investors can draw two lessons.
First, since 1955, bull markets in the FTSE All-Share Index have lasted longer than bear markets and delivered gains that are disproportionately greater than the bear market losses. Second, the importance of maintaining a disciplined investment approach that views market events and trends from a long-term perspective. Investors who react emotionally to short-term movements are at risk of making ill-timed decisions that compromise long-term performance.