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Investing should be for the long term

Financial markets can be volatile, with downturns as much a part of investing as bull markets.

However, short-term drawdowns in markets should not dissuade investors from the long-term returns on offer from markets. In fact, short-term drawdowns highlight the need for a long-term approach to investing. 

The chart below shows that despite market volatility, an investment in the FTSE All-Share 25 years ago would have grown to more than nine times its original value by December 2013.


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