Forgive my complete lack of knowledge on anything to do with this subject- but would now be a good time to purchase shares?
My only reasoning is that as share prices have dropped, many could be purchased comparatively cheaply and thus profit could be made when they rise again.
I suspect I am missing the impact of several aspects of the share market system, as this is hardly an original idea[:P]
If someone could explain why this is or is not a good idea I would be very appreciative.
I wouldn’t buy anything yet. There is absolutely no indication that the DJIA has bottomed yet. It is toying with 8000 support. If it breaks it, it wouldn’t surprise me to see the index close to a 5000 value relatively quickly.
Good question and good answer. I agree with Ruben that the “worst” is yet to come and we’ll see stock (and other goods) prices drop more in the next few months. Also remember that buying at “rock bottom” prices will also mean that to see decent dividends you’ll have to hold to your stocks for quite a long period (5 years? Just a guess).