Market Reaction - Where to From Here?

Welcome to 2008 - a year that has already seen much in the way of interesting market movements.

As you may be aware, global equity markets are reeling from the impact of the sub-prime mortgage crisis.  The S&P500 in the United States has fallen 14% since October and 8.3% so far in January.  And these falls have been matched in Australia with the S&P/ASX300 losing 15% since the end of October.

Where to from here?

This is the question being asked by many investors, as some view these events with a growing sense of trepidation.  However, it is important to remember that periods of volatility are an inevitable part of investing and, as an investor you need to remain focused on your long-term plans.

Investors should take comfort from attractive equity market valuations and the prospect for further aggressive US monetary easing.

Please find link below to your copy of "Market Reaction? issued by Russell Investment Group.  This document outlines the recent market activity and explains why it is important to stay focused on the long-term

Please take the time to read this document carefully.

During periods of volatility, it is normal for investors to want to make changes to their investment line-up.  In fact, investors do the most harm to their long-term wealth generation when they chase market performance - that is, chasing into investments after they have generated large returns and chasing out of investments after a downturn.

Disciplined investors should think about sticking to their long-term plan, staying diversified and looking past short term market distractions.

If you would like to make an appointment to discuss any of this information in more detail please feel free to contact Spectrum Financial Partners on 1300 55 65 35.

About Russell?????

Russell is one of the world's leading investment services firms, providing investment management, advisory, and diversified funds to clients in 44 countries.  Today, approximately A$234 billion is invested in Russell funds globally.

Worldwide, Russell serves approximately 2800 organisations and millions of individuals and employees through its investment management business.  From Australia, Russell brings individuals investment products and services through a network of distribution partners.

Russell is also one of the world"s largest retirement plan consultants, advising clients on the investment of approximately A$2.5 trillion in assets.  The company serves the pension funds of global corporations such as AT&T, BHP and General Motors.  They offer institutional investors a variety of consulting and investment management services directly.

You can also find out more about Russell at www.russell.com

 Click here to download your copy of "Market Reaction - Should I stay or should I go" by Russell