Long Term Investing Why It Works: The Merits of Playing a Long Term Game

CENTRAL DISTRICT, Hong Kong - Oct. 3, 2016 - PRLog -- ·        -  3 Decades after the "Big Bang" stock market Regulation, shares have beaten    cash savings returns

·        -  An investment of £10,000 would be worth in excess of £120,000

·         - A saving of £10,000 would be worth less than £29,000

The nature of any market is volatility and that is why when it comes to the subject of investing it is always worth considering the long game.

November coming will mark 3 decades since the "Big Bang" deregulation of the UK stock market effectively opening investing to the masses. Over this time there have been numerous market crashed which includes the financial crisis of 2008 and Black Monday.

Due to the negative nature of such occurrences is regularly cited as a reason why many people consider investing to be too risky for them. However, despite the turbulence, if you had put your savings into the markets 30 years ago would have proved to be far more rewarding than a savings account as shown by our and our peers research.

With this in mind it may be of no surprise that individuals that invested their monies with an active fund manager could have been even more handsomely rewarded if of course they selected the right one.

If they had been fortunate to choose BlackRock Continental European fund who invests in a diversified range of large European firms, £10,000 would be worth almost £430,000, that is £400,000 more than savings in cash.

The question that you may be asking is how do you achieve these types of returns and the answer is simple, through the reinvestment of the dividends. It is important to note that investment charges for investment advice, platforms, shares and funds would certainly eat into the figures that I have stated above.

James Adams, Director of Investment here at Wealth Alliance stated at a recent client meet and greet, "If anyone has a reservation regarding the benefits of investing into the stock market over hiding cash under the floor boards, certainly over the long term, then this research certainly highlights just how financially rewarding a well-diversified and structured investment plan can be." He added, "With the rate of interest on savings a rock bottom, the saying cash is king doesn't really hold any water nowadays. No matter where in the world you reside and where you invest your hard earned capital making money is all about the management/ tolerance of risk within a well-structured and thought out framework."

No matter which side of the fence that you sit on in my opinion there is no clear winner with cash over shares. Factors such as the up and comings US Election could spell periods of volatility in the markets and with extremely low rates of interest means that deals for cash savers are disappearing fast.

If you would like to establish how Wealth Alliance can assist you in securing a brighter financial future, then simply get in touch and make an appointment to speak to one of our representatives.

https://wealthallianceltd.com/