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Caution urged for investment in US funds

18 July 2007
Investing in the US stock market is still a viable option, but caution is urged if doing so.

This is the view of Kully Samra, the UK branch director of investment firm Schwab, who said withdrawal from the market is not advised.

He suggested a "defensive" approach, which involves splitting risk while still taking advantage of the market.

However, Mr Samra did urge investors to be prudent. "Don't miss out on the opportunity, but don't throw caution to the wind," he said.

According to the expert, some investors are choosing smaller yield options that offer long-term potential, while Schwab recommends investing in stocks and sectors.

The two sectors that outperform in times of uncertainty, according to Mr Samra, are consumer staples and healthcare.

He explained that these areas will always be in demand as "everyone always needs health" and even when the market trails off, "people are still going to have to buy groceries, they're still going to have to buy oil and all that kind of stuff".

Schwab offers discount brokerage and a wide range of investment research as well as mutual funds, annuities and bond trading.

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