Stock Market Volatility - January 2008

We thought that volatility would be the major feature of the markets for 2008 and so far my goodness it is certainly proving to be the case.

The so called credit crunch which has come from the American sub prime mortgage crisis continues to upset otherwise sound economic conditions.

Northern Rock remains the focal point in the UK and the uncertain position of the Government on the problem is a major cause of the current volatility. We are monitoring the situation very carefully but feel that until there is some clarity in the future of Northern Rock we will have to endure these very unpleasant Market conditions.

Your portfolio is of course invested in a mixed range of assets, with your exposure to the volatility of the equity markets balanced with more stable assets such as Gilts and Fixed Interest, so you are to some extent protected from the problems.

Timing movements in and out of investments when there is so much volatility is an impossible task and carries a huge risk of losing money. Your portfolio is constructed for medium to long term investment and our recommendation is therefore to sit tight and ride out the storm.

We do appreciate that you may have concerns over your investments and we will be happy to discuss these if you would like to get in touch.

On a broader front we would like to wish you a Happy New Year and look forward to the return of calmer times.

If you have any questions, please do not hesitate to contact us
on 01704 540575 or at advice@argylefinancialgroup.co.uk.

www.argylefinancialgroup.co.uk