With stock markets plummeting over the last year and a half and the fear of losing our job hanging over us, how is it possible to think about investing right now? Equity markets have more than halved. What is to stop them halving again?
There is no doubt that we are experiencing one of the worst bear markets in history and it may well continue for a little longer. But there is one thing that you can be absolutely certain of: this bear market, like all others before it, will end.
Broadly speaking, there are two types of investing: systematic and non-systematic. The first is a methodical approach and does not rely on one’s emotions or gut feelings. You put a fixed amount into the fund every month, regardless of market behaviour and the price of units.
Before you make any investment, it is always worth asking what your objectives are and whether they are suitable. A financial adviser can help.
Recently you may have heard “cash is king”, an expression that refers to the fact that holding cash is the best thing to do when risky assets are falling in value, as they have been during the recent bear market.