Market Expert Assures Investors Over 'Bear Market'

Falling stock markets should not encourage investors to sell off their equities, market strategists Edward Jones has claimed.

According to the firm's Kate Warne, who released new stock market analysis today, poor performances of indices are followed by rebounds - meaning that investors should hang on to their investments during these times, and might even look to pick up extra shares while they are cheap.

The comments were made after a week of falls on the UK equities markets, with the flagship FTSE 100 index even registering a three-figuredrop across the period. The trend also tips the FTSE All-Shares index towards having lost 20 per cent of its value since the last price peak - a situation which is called a "bear market" within the trade.

Ms Warne advised: "If you're a long-term investor, it's almost a certainty that you will experience many bear markets. If you are planning for at least 30 years, the past suggests you will invest through five or six bear markets including the current one.

"Our advice is this: Stock market declines are normal, happen frequently and are not a reason to sell quality investments. Instead, look for opportunities in equities that are appropriate to help you achieve your long-term goals."

According to Edward Jones' own analysis, which encompasses the stock market performance of all UK shares, there have been 11 bear markets over the past 60 years. Dips of ten per cent or more have also occurred 21 times, while there have also been 52 five per cent drops.