Time to sell or time to buy???

Time to sell or time to buy???

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OK lets be frank (my name is Patrick but today I can be frank)…2016 has not started too well for sharemarkets around the globe (save the New Zealand sharemarket which has been rather resilient thru the turmoil in spite of falling dairy prices – ok that’s a discussion for another time…). Many investors have chewed their nails down to the cuticles as they watch the value of their holdings drop daily over the past few weeks. It’s even harder for Kiwisaver members who have had a pretty good run if they started back in 2008 and avoided the GFC fall out (most would have). This is the first significant market correction we have had in a number of years which could see such investors receive their first six monthly negative return! Doom and gloom is everywhere. The sky is falling, chicken little…

Now let me ask you this question. If there is a sale at The Warehouse or Bunnings or New World, do you avoid it because you think the products are inferior? Or that nobody wants those sale items so they can’t be worth buying? Of course not. You go in there and buy up because those items are cheap and you can buy them for less than what you could yesterday or last week. You value them same so in essence, you got a bargain, or paid less than what you otherwise were prepared to pay.

The same can be said about the recent sharemarket ‘crash’ or ‘correction’ or whatever other term the columnists may refer to it in their daily bulletins. Getting the right advice is essential, of course but right now could spell opportunity for many who could essentially buy worthwhile, good investments for a bargain at what they otherwise would have paid. While nothing is ever guaranteed in the (not so) scary world of investing, broad markets and asset classes will always inevitably go up in value over the longer term, with short term set-backs in prices often presenting a great opportunity to buy.

So while everybody is talking about the next GFC/Tech/Bond market crash and nervous investors are calling their brokers to SELL SELL SELL, it might be time for the intelligent, longer term investors to talk to a good, reputable financial adviser about where opportunity lies to BUY, BUY BUY!

DISCLAIMER: The above comments are general in nature and DO NOT constitute financial advice. Before making any decision, we recommend you consult a financial planner or investment adviser to take into account your particular investment objectives, financial situation and individual needs.

A full disclosure statement is available on request and free of charge.

 

Author: patrick

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