The Dow Falls To A New Low For The Year, What’s Next?
The Dow Jones fell by just under four hundred points today to a new low for the year. Investors are running for cover in the belief that there could be more falls to come. So what does the future hold and what investment strategy should people have in these turbulent times?
I have a simple investment philosophy; buy low sell high. I actually, strangely enough, find these new yearly lows to be the perfect opportunity to purchase strong stocks. There are certain shares which in my opinion become over sold and therefore offer a great long term investment opportunity.
Now I am not a financial adviser, far from it. The advice and opinions that I share in this article should therefore not be seen as advice as I am not qualified to give it. I am however an experienced investor who enjoys playing and gambling on stocks and shares.
In times such as these I like to take advantage of pound cost averaging by investing a monthly amount into different financial markets from around the world.
I do not keep all of my eggs in one basket and am currently investing in regions such as Brazil, Russia, India and China. I also am of the belief that Japanese stocks are quite low and that this market is due for an upturn.
In the UK banking shares have been hit very hard. Large and well known companies such as Barclays and Lloyds Bank are looking extremely cheap at the moment. I am personally waiting for them both to go down to £3 a share before I take the plunge to purchase their shares. This may in fact not ever happen, we will have to wait and see.
I think that the next couple of years will be a testing one for stock markets. There is sure to be more bad news to come and therefore I am keeping a part of my portfolio in deposit type funds at the moment.
