Is now the time to buy?
If you think a full blown recession is just around the corner then it’s time to batton down the hatches and hoard all your money in cash, or some other safe haven. If on the other hand you accept that there is a downturn, a correction or bear market that is likely to get worse but won’t last too long, then now could be a great time to buy.
Shares and funds have taken a hammering since the start of the year, not only thanks to the credit crunch in the UK, but because our markets tend to follow the US and the growing number of speculators talking and betting the market down.
Bill Mott, manager of PSigma Income, remains optimistic and believes that if the latter scenario is true, this is a once in a decade chance to buy cheap shares. Adding that buying those stocks that have been hit the hardest is a good place to start. This tactic could prove very rewarding if you’re a younger investor who has some way to go before retirement.
Tags: funds, PSigma income
