COMMENTS

EDWARD JONES OFFERS TIPS FOR SURVIVING MARKET TURMOIL

By: Kristi Deering October 1, 2008

Investors troubled by a significant drop in the stock market may be considering all kinds of investment strategies to help stem their losses. But Edward Jones financial advisors say investors might better draw an analogy between fighting a bear market and battling a bear attack.

"Making sudden moves when you encounter a bear is almost always a bad idea," said Nicole England. "The same applies to bear markets. Jumping into or jumping out of the stock market is almost always a bad idea."

Nicole noted that, since 1900, there have been 32 bear markets, a period when the Dow Jones Industrial Average declines by 20 percent or more. On average, bear markets last 14 months. (Source: Ned Davis Research 1/2/1900-7/1/2008. Past performance is no guarantee of future results.)

She offered the following other highlights for investing in a down market:
• Stay the course. Stock market declines are normal and frequent and are not a reason to sell quality investments.
• Bear markets are typically short and have historically been followed by bull markets. Keep in mind past performance is no guarantee of future results.
• Bear markets are an opportunity to buy quality stocks at attractive prices.
• Bear markets transfer shares to their rightful owners: those who understand what they own, and why they own it.
• Don't own investments today that you would not want to own in a bear market tomorrow. Quality investments typically have what it takes to bounce back. Lower-quality investments may not recover when the bear market ends.


Edward Jones provides financial services for individual investors in the United States and, through its affiliates, in Canada and the United Kingdom. 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 10,000-plus financial advisors work directly with more than 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 is headquartered in St. Louis. The Edward Jones interactive Web site is located at www.edwardjones.com, and its recruiting Web site is www.careers.edwardjones.com . Member SIPC.