From 2004 to 2006, market fluctuations in the US stick market were virtually no existent. It was one of the best times to invest in the last 30 years, except from 1993 to 1996 when the market was similarly as calm. However with the recent mortgage and loan crisis it looks like those days are over, and the market will continue to be as unpredictable than ever in the next few years.

It is important to remember that most long term investments will be able to weather through the unpredictable market, and in the long run when the market is back at a high, your investment will have made you plenty of money. But you must remember that it is important to stick with your investment. There will be times when your investment may seem that it is losing money, but if you buy new stock while the market is low and hold on to them for a few years, you will most definitely see huge gains.

“It’s during times of volatility, the scary times, that your discipline pays off,” says Stephen Wood, senior strategist at Russell Investment Group.

You should also consider in investing in large companies that are not completely dependant on US funding, and have foreign investors so the company will still grow, even during recession.

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