Wednesday, February 25, 2009
Editor at large of Country Life talks the market up
"It is better to buy in a declining market than a rising one". No it isn't. It is better to keep your money under the bed than in a large single highly leveraged asset that is falling in value by 1-2% a month. Also there will be no hurry when the market finally turns. In the 1990s the market fell for 3.5 years, then was flat for another three years. This time the bubble has been much larger, so the collapse and turnaround will likely take longer too.