Opportunity Investing During Volatility

Published / Last Updated on 16/02/2022

We all know about and understand the principle of “buy low sell high”.

We all want to buy shares or property or any other asset when prices are low and then sell when markets are high.

Timing is an issue; it is difficult if nigh on impossible.  Nobody can call the bottom or top of markets and we must make educated or informed, experienced decisions.

Experience tells us that after market falls or crashes, they will recover usually within quite a short period although sometimes it can take longer but we also see that as an opportunity to keep buying even more units or shares at a lower price.

Educated/informed decision making or even ‘soft gambling’ is one way to achieve growth.

Drip Feed

Some prefer to spread risk by drip feeding throughout the year, so that you get the average price and therefore the average growth (or loss) over the whole year.  This is known as pound cost averaging.

Others that hold cash reserves or even cash funds inside their pension or investment portfolio to balance their portfolios, take a more proactive approach to invest sums into markets even when they have already made losses on funds that were invested before the falls.

Fully Vest All or Some Cash Reserves

Opportunity investing is about getting additional growth after a market fall by moving more into equities, usually outside your risk profile and tolerance to losses, securing growth with any recovery and then switching back to your original asset allocation mix of equities, bonds, property and cash.

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