Long-term investors ''can still expect good returns from the UK market''

By MoneyhighStreet Staff. Published on July 21, 2008 This post currently has no comments.

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As fears mount about a possible recession in the UK, a new report has highlighted that investors can still expect impressive returns if they put their money in the stock market and adopt a long-term view.

Analysis from Edward Jones showed that the UK markets have historically always recovered from economic shock to deliver impressive returns for the long-term investor.

For example, the firm showed that someone who invested £10,000 in the stock market at the height of the Winter of Discontent in 1978 would now have £506,546.

Similarly, an investor who put the money into the market during the 1987 crash would now have £81,593.

A statement from the company explained: "Prudent investing depends on a strategy that includes buying quality equity investments and holding them for the long term - in other words, time in the market, not timing the market.

"Your strategy also should include diversification. Diversification involves investing in companies in different industries so that your success is not tied to a single industry''s performance."

Recently, experts at Morningstar said that people should be careful about putting their money into the expanding commodities market.