Since the start of May we have seen some considerable falls on stock markets. In fact for a lot of them they are down about 10-15%. This might be scary, this might be the start of a double dip rescession or maybe it is just the start of a fantastic rally.
For the short term investor I think it might be a rough summer, but I think the current market turmoil represents an excellent buying opportunity for the longer term investor. If you are going in, consider hedging your bets by averaging into the market. (if you know what this means go for it, if not give me a ring you need a financial advisor)
Don’t be too worried if you do decide to invest about what the values look like short term, I believe the world is still recovering but I think it will be a rocky road, longer term investors should be rewarded for investing at times when everyone else is running scared.
The big threats at the minute are Spain going belly up and needing a bail out and governments pulling back on their spending. The good news is I believe that Europe is far too committed financially and politically to the survival of the EU to let Spain go and secondly the bigger governments will probably suit their spending to the requirements of the economy. (where possible)
It is fun times watching the markets but I find it even more enjoyable whenI am participating.