Corporate profits are up while the market is down, making this a great time to buy good-quality investments at attractive prices.“We believe investors who can find the courage to invest during these uncertain times will be well-rewarded in the long run,” Skrainka said.For a copy of the study, please call your local Edward Jones investment representative.Edward Jones, the only major financial-services firm advising individual investors exclusively, traces its roots to 1871 and currently serves more than six million clients. The firm offers its clients a variety of investments, including certificates of deposit, taxable and non-taxable bonds, stocks and mutual funds.The largest firm in the nation in terms of branch offices, Edward Jones currently has more than 9,000 offices I the U.S. and, through its affiliates, in Canada and the United Kingdom.The Edward Jones interactive Web site is located at www.edwardjones.com.
Political, global uncertainties do not impact long-term investments, says Edward Jones expert
September 01, 2004
Santa Paula News
While the tight U.S. presidential race is a leading factor influencing today’s market, a recent study by the financial-services firm Edward Jones shows the market does well over the long term regardless of who occupies the White House.
While the tight U.S. presidential race is a leading factor influencing today’s market, a recent study by the financial-services firm Edward Jones shows the market does well over the long term regardless of who occupies the White House.In fact, the study by Edward Jones Chief Market Strategist Alan Skrainka shows that in terms of historical market performance, it doesn’t matter who is elected president in November or what his party affiliation. Dating back to Harry S. Truman in 1948, the market, based on the Dow Jones Industrial Average (DJIA), has increased between 10.5 and 14.5 percent (for periods longer than four years) between the day each U.S. president was elected and the end of 2003. (Past performance does not assure future results. The DJIA is an unmanaged index that cannot be invested into directly.)“This narrow range illustrates one thing: it’s time in the market, not timing the market, that counts,” said Skrainka.Investors with a long-term investment strategy are urged to look beyond the issues being debated this election year – the overall short-term uncertainties of oil prices, Iraq, the war on terrorism and the potential for rising interest rates. That’s because underlying business conditions are strong, Skrainka said.“Short-term uncertainties and market volatility are a normal part of investing,” Skrainka said. “We believe it’s a mistake to focus only on the bad news. There is plenty of good news for long-term investors.”Low interest rates, low inflation and low unemployment have contributed to 11 consecutive quarters of economic growth where consumer confidence is higher than it’s been in more than two years.Even more importantly, corporate profits – which drive the stock market – have continued to expand well above expert forecasts.“In fact, corporate profits have grown more than 20 percent for four consecutive quarters, something that has only occurred four other times in the past 50 years,” Skrainka said.
