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No panic as investors dig in for the long term

Investors are getting the message that investments are for the long term as IFAs report few panic calls from clients following last week&#39s events.

IFAs have been quietly impressed with the cool heads shown by investors as markets continue their rocky ride in the week following the terrorist attacks. They also believe that better risk warnings accompanying product literature are helping to get the message across.

After days of volatility which saw the Dow Jones Industrial Average dive by 600 points on Monday in the first hour of trading, IFAs had been prepared to field calls from panicking clients. But they say investors are responding to this crisis in a more sophisticated way, with more clients now having greater experience of investment, recent memories of the Russian and Asian crises and more understanding of the long-term nature of investments.

Churchill Investment managing directors Jamie Ware says: “It is not like 1987. We are not getting the phone going every two minutes. People are better educated by the financial press and have lived through several downturns already. Clients are reading the risk guides and warnings and know what they are going into.”

Informed Choice managing director Nick Bamford says: “In the last week I have only had two calls from concerned investors.

“Aside from the tragic events themselves, the reality is that this attack forms a tiny part of an individual&#39s investment life.”

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