Sunday, November 30, 2008

Share Market Investment During Economic Crisis?

Is it a good time to invest in Sharemarket right now?
Some people says, this is the time to invest in during this time of economy down turn. Reason given is that a lot of the share values are under market value.
If you buy that as a good statement, I wish you good luck.
Well, no one really can tell what will happen tomorrow, right?
Same to Share Market.
Those people that tells you that ' it is the best time to invest...', they are actually assuming the economy will boost in a very near future. An diagram as like this:-
The red point represent the time, and the blue line is the predicted trend.
They are 'guessing' that the share values will shoot up.
If that is the case for now, then it is the RIGHT TIME.

BUT, what if the current situation is like this:-
Where this diagram shows that the market trend is predicted to be going down for awhile before it rise up. Then, it is not a good time to invest. You would want to wait for awhile until it reach the bottom.
The conclusion is - there is no conclusion to the Share market analysis as you may already have realized that it has the same rules as gambling. No right no wrong, just your luck. Trust your sense and have a good timing.
Good Luck.









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