Well, there’s one thing I can say with confidence – it’s a better time to invest now than it was a month ago!
Anyone that tries to tell you they know which way the stock market will move from this point is kidding themselves. But it could be a good time to think about a phased investment. By investing a fixed amount every month you can benefit from a principle termed Pound Cost Averaging.
The principle is simple: By investing a fixed amount every month, you will always purchase more units at a lower price, than a higher price, no matter which way the market moves.
A phased investment is less risky than a lump investment and therefore the possible gains are reduced as well as the losses. However, due to Pound Cost Averaging, the losses are reduced by more than the gains.
So, if you want to take advantage of the fall in the market, but are concerned about the current level of market volatility, talk to me about a phased investment.