Investors warned not to follow the crowd
Investors could be missing out on better returns over the long-term if they have a 'follow the crowd' attitude toward investing, saying JP Morgan Asset Management (JPMAM) has warned.Investment trends are often linked to behaviour is largely driven by reaction and emotion, so investors tend to buy when the market is at a peak and prices are high, and as a result are missing out on good opportunities on lower priced shares, according to JPMAM.Mike Parsons, head of UK distributor sales at JPMAM said: "Our message to investors is not to sell in a market downturn. This will only serve to crystallise losses. "There is no need to risk the timing of markets; its enough to be in markets as the long-term performance of equities has historically proven. "We fully appreciate that investors can become concerned when markets fall but we would urge them to take the long-term view with a well balanced, diversified portfolio."The company advises that buying when others are selling and keeping hold of any investments for the long haul makes the best sense, and that those who can avoid the temptation to sell at the first wobble will get the best returns in the long term.
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