Could it soon be time for new investors?
Monday October 13, 2008
With a huge interest rate drop of an entire percentage point with expectations of more to follow by year's end, as well as some excellent stocks experiencing incredible drops in value, could new investors soon step in? While older hands may be nursing their wounds and waiting to see some strong signs of recovery in world stock markets before buying shares again, less experienced or completely inexperienced traders may try to make hay even while the sun doesn't shine. With the property market being so costly to enter, many younger traders could be looking to pounce on low priced shares in successful companies while the market is still in turmoil.
While some massive institutions have collapsed in the current economic crisis, there will always be people who do not believe that it could happen to any other institutions. They will likely buy shares as cheaply as they can with borrowed money on the possibility of making that money back once the market has stabilised and eventually grows again. The problem with this thinking is that investing in shares is always a risk and buying shares during a stock market event that compares to the crash of 1929 and the lead up to the Great Depression is certainly not going to assure success. Choosing a stock broker that knows your expectations from stock markets and investments and whether you can reasonably make investments currently to satisfy those expectations can be helpful in curbing tendencies to starting buying and selling shares at the wrong time.
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