Is a SIP a good plan for recession?

KayakJim

Hi I am very new to the investment world, is it really a good time to be thinking about share investments? I have the oppurtunity to start investing in my companies share incentive plan. Is this a good idea in the current climate or am I better off putting the money under the mattress?

purch

1. Advice about a specific stock is not allowed on this site
2. You, as an employee should know far more about your company than anyone on here
3. Errrrr..........
4. That's all............
5. ..............

Primrose

Without knowing what kind of business your company is in, it's difficult to offer an opinion. If it's a retail business, with the current economic trend, it may not even exist in 12 months time! I don't think many people yet have quite understood how deep this recession could become. If you can afford to lose the money, you could consider investing a very small amount. But right now (having survived a couple of redundancies in our family and two prior serious recessions) my own instinct would be to increase your contingency/emergency savings so you have at least six months liquid cash on deposit in the event of you losing your job and not be tempted by the thought of making possible longer term profits. In the event of redundancy, there is nothing more stressful than having all your job applications being rejected or even unanswered whilst watching your emergency savings dimish month by month as you try and keep on top of your bills. Stay liquid and keep as much control of your own circumstances as you can right now.

KayakJim

purch wrote: »

1. Advice about a specific stock is not allowed on this site
quote]
To clarify my question does not relate to advice regarding specific stock, as I have not mentioned any, but rather to the principle of investing in SIPs generally during a period of decline, but thanks anyway.

Primrose. Thanks for the perspective, very useful. I think I will monitor things for a few months and see how deep we go and perhaps look at investment and a recovery seems more certain.

purch

In the current environment there is no reason that any individual Stock cannot 'buck the trend' of the market and do well.

It is very rare for every Stock in any particular Index to perform either well or poorly at the same time.

I would no use the general state of the economy or market as a reason or excuse to invest, or not invest in a particular stock. Each stock has it's own particular characteristics and some will perform well during the next few years even if the market as a whole tanks.

Bottom line is only you know your own situation, and only you know the Company you have the opportunity to Invest into.