Take Advantage in a Recession

humagaia By humagaia, 11th Apr 2010 | Follow this author | RSS Feed | Short URL http://nut.bz/ecdwtsye/
Posted in Wikinut>Business>Investment

Some reasons why it is essential to invest knowledgeably in a recession.

Why may it be an Advantage to get Started with an Investment Strategy during a Recession?

Acting knowledgeably both during good times and bad is essential to building long-term wealth. You must not make the mistake of delaying your start to financial success because of current conditions.
In fact, as you read through the following articles, you will see that recessions often provide excellent opportunities for knowledgeable and astute investors. For instance, you will achieve much greater returns buying Investment Trusts when they are at or near their lowest market price, compared to being a sheep and following the crowd, than buying during a boom.
If there is one thing that you must learn from this series of articles is that individual investors as well as markets ALWAYS react in extremes of both optimism and pessimism. If you REMEMBER that things are NEVER as good or as bad as they appear, then you can take advantage of opportunities that present themselves that others will not have seen - yet! Gauge the mood of the moment in order to determine whether to move into or out of shares (for US readers read Stocks), into or out of precious metals, into or out of property, and so on and so on...............
Remember also that it is better to take a reasonable profit than to try to eke out every little percentage point of gain. NOBODY is able to predict EXACTLY when the top of a market has arrived. NOBODY obtains the most profit possible, consistently. NOBODY can predict exactly when a market has bottomed out. In general terms market highs and market lows can be estimated. Again by gauging the mood of the market one can invest just before or just after the low point or divest just before or just after the high point. It is better to invest just before the low point and divest just before the high point as being too late may mean you are left behind and lose what you have gained. My advice is to act too soon! Sell too soon in order to pre-empt the crowd. Buy too soon for the same reason.

Conclusion

A long-term financial plan is essential in both good and bad times. Over the term of your investing life you will see many ups and downs in the markets. Keep a realistic perspective. Avoid the depths of gloom or the heights of optimism. Sell too soon. Buy on an investors mood upturn. These are all essential skills for successful investing.

Invite:

You are invited to view and contribute to my blog
If you are interested, please look at my blog-profile

Tags

Build Wealth, Finance Management, Financial Investment, Financial Plan, Financial Success, Investing, Investor, Investors, Knowledge, Long Term, Market Cycles, Markets, Recession, Stock Market

Meet the author

author avatar humagaia
I am a grumpy old man with experience in many fields that I can write about including finance & investing, antiques & collecting, modern ceramics, software, books & education.& my grumps & gripes.

Share this page

moderator Chief Nut moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Alicia Badilla
9th Sep 2011 (#)

I am interested in hearing more about antiques.

Reply to this comment

Add a comment
Username
Can't login?
Password