INVSTR033 The power of "average" (477 words)

This is an interesting article about the need to be prepared for market volatility. It discusses that sound investments recover over time and emphasises the need for diversification. It includes a 10-year investment return table.

When financial markets experience volatility, many investors obviously worry; but what are the real effects of a “volatile market”?

It is also important to note that different asset classes will outperform in different years. This is illustrated by looking at five major asset classes over the 10 years...