While investors are looking for the ways to survive during these turbulent times, some may have overlooked the basic principles of investing and missed a good opportunity.
Everyone is casting a wait and see attitude. Too much uncertainty, lack of information and impending bad news may be the reasons for this mentality. People who are looking to take a dip into the share market, spend most of their lives waiting for the market to drop. And when it finally drops to a point where value is created, instead of adhering to the initial investment strategy to buy at the price originally intended, or psychological fear starts to creep in. Investors starts worrying that the market has not bottomed yet and by the time they regain their confidence and conviction through positive news from mass media, the market has probably regained its footing to a certain higher level. As the share market is an efficient leading indicator of the future economic situation, it leads to people buying when it's expensive. Ironic, but certainly very true. 'People generally like to buy when it's expensive'.
The market operates in cycles that are common knowledge to all. Wealth is to be created when market is down, when the future is at its bleakest and when everyone feels all hopes are lost, not the other way around......
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