“Today’s stock market volatility is being fueled by fear - fear over U.S. and European debt, not by market fundamentals, which we believe are generally strong,” Hovis said. “We believe that long-term investors should stay the course if they have a well-diversified portfolio of quality investments and a long-term perspective.”
Hovis does not see today’s volatility as a repeat of 2008, when the country was in a recession and a financial crisis.
“Because there are now fundamental differences in economic and market conditions, we believe this has the potential to present good opportunities for long-term investors to purchase quality investments at lower prices,” according to Hovis.
Hovis cites positive economic growth, an additional 1 million jobs added in the first seven months of the year compared to about the same as in all of 2010 and record high corporate earnings as indicators of strong market fundamentals.
“In addition, oil prices are lower, giving consumers some help, and U.S. financial companies in general are in better shape as many are much better capitalized and have reduced risks in their businesses,” Hovis said.
The sidelines are no place to be when it comes to one’s long-term money, he said.
Edward Jones provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm’s business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm’s 12,000-plus financial advisors work directly with nearly 7 million clients to understand their personal goals - from college savings to retirement - and create long-term investment solutions that emphasize a well-balanced portfolio and a buy-and-hold strategy. Edward Jones embraces the importance of building long-term, face-to-face relationships with clients, helping them to understand and make sense of the investment options available today.
Edward Jones, which ranked number 11 on Fortune magazine’s 100 Best Companies to Work For in 2011, is headquartered in St. Louis. The Edward Jones website is located at http://www.edwardjones.com, and its recruiting website is http://www.careers.edwardjones.com. Member SIPC.
Published: August 18, 2011