Timing the market

It is difficult to time the market. Will the market drop further? It is possible. But no one knows. If it does drop further, when is a good time to invest?

Some people advice that it is better to wait for the market to drop to the bottom and wait for the rebound. But it is still difficult to catch the right time, as the market may drop again after the rebound.

Other people advice that it is better to wait for 6 to 12 months to see wait until the credit crisis is over.

My personal view is:

1. It is difficult to time the market.
2. The stockmarket has corrected to an attractive value
3. It is all right for a long term investor to start investing
4. Due to the uncertainty, the investment can be made in tranches over the next six months

I am adopting the above approach for my personal investment (of which about 50% is still in cash).

Warren Buffet is making strategic purchases at this time, as they represent good value.

All the best for your investments.