Is Now A Good Time To Buy Shares?

tomterm8

thewinkshow wrote: »

Hi All,

Is now a good time to buy shares?

Any thoughts?

Cheers

1. Only buy shares with money you can afford to lose. At this stage in the game, don't invest in bank shares until you know what the government will do. Make sure you diversify your risk. If you don't know what diversify your risk means, don't invest until you find out.

2. typical normal UK recessions, the drop between peak stock market and trough is on average 25%. The current stock market has dropped c. 30%. I don't know of any recession since the war where if you'd invested after a 30% drop, you wouldn't have made good money by selling the shares within 5 years. but...

3. In the last credit crunch (1974) the stock marked dropped 75% peak to trough, and the financial system is still well and trully gummed up. There are examples like Japan where stock markets fell around 80% and has never recovered to the pre credit crunch levels.

so, take your money and makes your choice, but don't play with money you can't afford to lose, and put into the equation that you might be unemployed this time next year.

thewinkshow

sound advice, cheers

mdean

lots of equally secure options here https://www.betfair.com

Count_Dante

Japan's stock market has still not recovered since the crash of the early nineties, and it is falling. Money placed in the stock market now must be considered a high risk, high reward bet.

lokiman

StevieJ wrote: »

Yes wait for the market to rise to 6700 and buy in like all the other losers.

Yeah, that's a good attitude.......

thewinkshow

any thoughts on investing now the goverment has pumped some money into the market?

Nick_C

I think things are going to get a lot worse before they get better. So far, the problems have mainly been caused by the instability in the Banking sector caused by the situation in the US. When the recession really hits here in the UK, when people start losing their jobs in large numbers, when people start giving back their house keys because of negative equity, I think the markets will slump further.

I like the idea of a tracker fund, but not yet.

sabretoothtigger

There is no magic day to buy shares and if there was how the hell would anyone on this forum know when. If I knew I would be moving to live in the Caribbean soon after

Buy into the market gradually, over the course of year. Dont be greedy expecting instant profit within the hour, just hope the year you choose the market is positive overall

Now is a better time to buy shares then when they were ten times the price Im fairly certain, limit your capital investment so that you can keep on buying after your first purchases.
Eventually your average cost will be below the average price you hold, this requires a positive movement so over a year is a better bet then just one day. You could still end the year with an overall loss but it should be less likely

Uncle_Rico

thewinkshow wrote: »

i know absolutley fek all about investing by the way.

Cheers

Don't do anything until you do then.:exclamati

thewinkshow

lol valid comment pal.