Are S&S really so bad in the current finicial climate?

[Deleted User]

I read a lot of threads on here which say, "no, no, don't invest in the stock market, look at the credit crisis and share prices :eek:!"

Don't get me wrong, I'm no expert but I do read a lot and listen to a lot of opinions on the current state of the financial world and it seems to me now is exactly the right time to buy S&S with prices, in general, being lower (obviously for a minimum of 5 years and not taking advice from your local bank manager )

It just slightly annoys me people advise to not buy S&S just because of the current worry around the financial market - or so it seems...

What do other people think - Aegis, dunstonh, Mikeyorks - it'd be nice to hear your thoughts and opinions...

dunstonh

I read a lot of threads on here which say, "no, no, don't invest in the stock market, look at the credit crisis and share prices :eek:!"

I havent seen threads saying that apart from a couple of individuals that dont know about investing. I think you have to accept that you will get inexperienced investors who either rant on about losses they made in the last crash because they invested over their risk proifle or pulled out before the recovery came.

There are opportunities out there across the risk range. As long as you have the timescale and the investments to match the risk profile then now is as good as any for a diversified portfolio.

CLAPTON

obviously S&S were a bad deal last year and the year before that etc because now they have (preditably ) fallen

now of course they are a good deal as long as you are keeping them for a reasonable period (say 5 years or more)

shokadelika

CLAPTON wrote: »

obviously S&S were a bad deal last year and the year before that etc because now they have (preditably ) fallen

now of course they are a good deal as long as you are keeping them for a reasonable period (say 5 years or more)

Based on what ?
Which markets S&S are you commenting on?

Aegis

Deleted_User wrote: »

I read a lot of threads on here which say, "no, no, don't invest in the stock market, look at the credit crisis and share prices :eek:!"

Don't get me wrong, I'm no expert but I do read a lot and listen to a lot of opinions on the current state of the financial world and it seems to me now is exactly the right time to buy S&S with prices, in general, being lower (obviously for a minimum of 5 years and not taking advice from your local bank manager )

It just slightly annoys me people advise to not buy S&S just because of the current worry around the financial market - or so it seems...

What do other people think - Aegis, dunstonh, Mikeyorks - it'd be nice to hear your thoughts and opinions...

If you're drip-feeding into diversified assets, then a falling market doesn't bother you so much because in the long run the drip feeding tends to smooth out the volatility, buying more units when the markets are low and fewer when they're higher.

As long as you're happy with the overall risk profile of your portfolio, then a market like now won't bother you much in the long run. Yes, you'll lose out to people who always manage to buy at the low point of the market, but not by as much as they probably think you would!