Over the long term, the stock market has tended to outperform cash.

Past performance is not a reliable indicator of future performance and the market is also volatile, which has a tendency to worry investors somewhat, tempting them to sell at the first sign of trouble.

However, selling after a sharp fall can be a knee-jerk reaction. Falls can be followed by upward movements and, over the longer term, short-term ups and downs should have no serious impact on your objectives.

Share prices go down as well as up and are not guaranteed, so think before you act. If your portfolio is set up to fit your aims and is in line with your attitude to risk; time, and a little TLC, should be all it needs.

Common Mistakes

We are all human and we all make mistakes. But for investors those mistakes cost money.

Knowing the most common pitfalls can help you learn from the mistakes of others and so avoid losing out.

For example, following the herd can be a recipe for disaster - remember when people piled into dotcoms in the late 1990's?

Also don't panic on a downturn. Selling out without serious reason will crystalise a loss and you may miss out on a rebound.

Finally, never chase a quick profit, thinking you can time the market - this is no different to gambling on the horses. Investment is a long-term game and requires planning. Any other approach makes it a highly risky business.

That's where we can help you.

Guildhall Financial Services,

Suite 3, Ventura House, Kempson Way, Moreton Hall, Bury St Edmunds, IP32 7AR

Telephone: 01284 723422 Fax: 01284 761374 Mobile: 07702 686176

email: roger@young-ifa.co.uk

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Guildhall Financial Services is an appointed representative of Sesame Ltd which is authorised and regulated by The Financial Services Authority (FSA). Sesame is entered on the FSA register at http://www.fsa.gov.uk under reference 150427.