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Long Term Investing


The chart on the risk-reward relationship page clearly illustrates the higher volatility of stock investments relative to bond and cash-oriented investments. While stocks have often had their ups and downs, they have historically provided a higher rate of return over long periods of time. Of course, past performance is no guarantee for future results.

We believe that adopting a long-term approach to investing offers you the best strategy for taking advantage of the higher return potential of stocks. While stock prices may fluctuate substantially over short periods of time, a long-term approach may allow you to ride out downturns in the market.

It's best not to try to "time the market," jumping in and out of investments in an effort to buy before a price increase or sell before a price decrease. Timing the market is a gamble, even for the most sophisticated investor. Investing over the long term gives you the opportunity to sell or redeem at a time that's more favorable for you.

We'll make sure that the Personal Investment Plan we develop for you recommends appropriate investments for your specific time horizon.

Long-Term Investing Performance Comparison

*Source: Micropal, AIM. The returns shown in the chart represent the performance of unmanaged indices which are not securities, and assume reinvestment of dividends and interest payments. The performance figures do not reflect the impact of any expenses, such as commissions or sales charges, that would have been associated with actual investments and would reduce returns. Indices used: S&P 500 (Stocks), Lehman Brothers Intermediate Government/Corporate Bonds Index (Bonds), Federal Reserve 91 Day Treasury Bill data (Cash).

For more information call on our 24-Hour CitiPhone Service at 1758 2484 (CITI).

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