Profiting from market downturn

TheStar Sat, Mar 21, 2020 10:00am - 4 years View Original


Investment strategy: The benefit of dollar-cost averaging is that you don’t have to monitor the price movement and you don’t have to make a decision every time you want to invest. In fact, dollar-cost averaging is quite a no-brainer strategy.

MOST people tend to be very bearish about the stock market after a crash. In fact, most investors would feel that it would be best to avoid the stock market for now.

Some may even want to cut their current investment losses and get out of their investments in equities, even though seasoned investors would tell you that the best opportunity to enter the market would be after a market crash.

Following the recent global stock market downturn, market sentiments, the desire and motivation to invest is at an all-time low. Understandably so, after all, once bitten twice shy.

However, the legendary “Oracle of Omaha” and one of the most successful investor of all time, Warren Buffett, once said that as an investor, it is wise to be “fearful when others are greedy, and greedy when others are fearful.”

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