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The euro stays under fierce attack and stock markets all over the world are volatile, so what possible reasons may there be for placing your money into stocks now?

There are 5 arguments in favour of investing for the long term in equitities.

The FTSE 100 fell more than 2% to beneath the psychologically vital 5,000 level last Tuesday. However on Wednesday and Thursday, bargain hunters have been buying up low cost shares and pushing the FTSE back up to get back all of Tuesday’s slump.

Skilled investors have additionally been making the most of lower prices.

Anthony Bolton, the celebrated Fidelity fund manager staking his repute on a new China fund, is investing about 400m of British savers’ cash there.

Last week he said market drops introduced ‘vital opportunities.’

With financial savings rates at record lows, corporations that pay dividends to shareholders are attractive.

The lower their stock prices, the more appealing their hoped-for dividends become.

Numerous FTSE 100 giants, similar to drug maker Glaxo and telecoms giant Vodafone, pay good-looking dividends.

Shopping for shares in such corporations can secure a yield – that is the value of the historic dividend relative to share value – of 5%.

There’s also the hope of capital growth although, importantly, values could fall further. How dependable are these firms’ dividends?

Lots of our largest companies earn most of their earnings abroad.

Many also produce goods and services – such as healthcare or tobacco – for which there’s robust demand even throughout recessions.

Dividends have rarely been more necessary to investors. If you do not wish to put money into shares directly, you can pick an equity income fund where a professional money manager does the work on your behalf.

The euro disaster has pushed global capital toward the dollar, pushing it up versus weaker currencies, together with sterling.

This is excellent news for British investors in shares or funds where company earnings, and dividends, are denominated in US dollars as they get an uplift purely on currency.

The decoupling argument posed the theory that rising economies like China and India had enough momentum to grow, even if the established economies of the west faltered or shrank.

That concept proved flawed in 2009 when the worldwide recession triggered by the West’s financial disaster induced even China’s highly effective financial system to cease growing.

However now economists say decoupling really is happening. Whereas the West languishes in fragile recovery, China and India thrive and supply buyers opportunities to profit.

James Dowey, economist at fund group Neptune, says: ‘Until now, these markets have been suppliers of goods needing to be exported. Post-crisis, they’re demonstrating they’ve the scale to grow internally.’

Investors have access to many funds that invest in China. Extremely regarded ones include First State Greater China Growth and Jupiter China.

Whether British traders opt for a China fund they are likely to benefit from the nation’s development through their holdings in British companies, like Burberry, which trade more and more in Asia.

Be cautious as China’s growth has always been in fits and starts and will continue so.

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