Is Now A Good Time To Buy Shares?

swiss69

History shows that people who invest at times of crisis usually do very well as long as they get out when they have made a decent profit and dont get too greedy. Anyone who invested on Black Monday in 1987 did pretty well for the next 10 years! Anyone who invested when the yanks were invading Iraq and the market sat at 3300 or whatever it was did pretty well for the next 4 years etc.....

The key to all investment is not to be too greedy and diversify as much as possible both with asset classes, companies and global diversity. Some stocks do well in times of crisis.

Anthony Bolton, former fund manager with Fidelity said ths week that he sees value and is investing his own money again for the first time in ages.

How many people jump on bandwagons in the country purely down to greed.
Lets look at some examples.

The time to get involved in buy to let was in 2000 when you could buy a property for £30k and get an instant 8-10% yield not 2006/07 when the market is saturated with flats that are no more than boxes and will probably be worth little in 25 years when their build quality and design will probably be out of fashion!

How many people invested in tech shares in 2001 at the top of the market and lost a packet?

How many people went into Russia/India/China when the market was overblown and have seen subsequent losses of 40% plus?

How many people went into commercial property funds at the peak only to see prices plummet?

Time will tell if it is a good time to invest but my view is that whilst not without risk, people may look back in a few years time and say what an opportunity that was.

Joe65_2

Right now the Governments are keen to protect the deposits of (their own) Savers, while they're letting Shareholders go hang.

Chance it on something that's got a future, but the current cash flow problems might prevent anything with otherwise good prospects from reaching that future.

Trollfever

Please buy, buy, buy.

I need to recover my losses!

Joe65_2

Trollfever wrote: »

Please buy, buy, buy.

I need to recover my losses!

...or rather bye, bye bye.