Feeling for the bottom?
January 25, 2009[originally posted Wednesday 21st January, 2009]
World stock markets are suffering from a lack of investor confidence and lacking direction.
invest with confidence
What should you do? Keep your powder dry & wait for things to bottom out before you invest? As an investment strategy it’s sensible enough in theory, but the retail investor will always come out second best when compared with the pros.
My advice? Make good medium to long-term decisions and invest with confidence. Here’s an analogy:
That car of your dreams has been retailing at £20k for a couple of years. You may not have bought one, but plenty other people did. Now it’s discounted to £12k and no-one’s buying. What’s stopping you? Fear that you’ll miss out on a bargain next month when desperate dealers knock another £500 off the asking price?
It’s not just the fictional car that’s 40% cheaper today than a year ago. It’s very likely that there are significant gains to be made by anyone with an investment perspective of 5-10 years, so don’t risk missing the boat by waiting for the market to bottom out. Fund selection, risk management and clarity about your own objectives are more important than ever, so get informed, then get professional advice.
If you’re not sure, just ask.
