over 1 year ago • 1 min
Soaring inflation, rising interest rates, and the outbreak of war have all scared markets into a rut recently, and investors far and wide have been buying the dip. So we asked 500 of you whether you’re doing the same, and you’re split on the matter: 57% of you said you’re planning to buy the dip, with a particular emphasis on risky markets like stocks and crypto (makes sense, given they potentially have more to gain).
If you’re waiting to buy in, it might be because you’re holding off until the market falls even more. After all, there’s plenty of evidence to suggest it will: stocks are arguably overvalued, while a bunch of indicators are flashing warning signs. What’s more, analysts at Morgan Stanley said this week that weakening corporate profits could cause the S&P 500 to drop another 17% by the time next earnings season comes around.
Whether you’re committed to buying the dip or sitting on your hands until this all blows over, there are merits either way. And if you’re torn between both, it can be useful to remember that trying to time the market is a tough ask, and that dollar-cost averaging – investing a predefined amount at fixed intervals – could help you reduce the impact of any market swings, without missing a sudden market recovery.
Ultimately, the worst thing you could do would be to panic, and there should be no reason to if you still believe in the reasons you invested in the first place. And it looks like most of you do: 66% of you are down 30% or more on your portfolios this year, but only 3% of you are selling your investments. It’s enough to bring a proud tear to this analyst’s eye.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.