Is now a good time to invest?

So we’re on the brink of recession, if not already in one.  Another dismal day on the markets, with shares dropping around 9% approx.  All sectors today in the British economy have fallen substantially.  However, doesn’t this scenario provide the opportunity investors are looking for?

It doesn’t take a rocket scientist to work out that buying shares at their lowest and selling at their highest is the utopia of investing in the markets.  In fact many advanced investors do not sell their shares as they drop but simply buy up more of the stock in anticipation of the upturn.

Warren Buffet yesterday told American investors to “buy American” as he is doing, supposedly because many US companies have fallen as far as they can….

…and this is the question; when will the markets hit the bottom?  I have friends who have started buying up banking shares in RBS and Barclays because they feel the bottom has been reached, or at least has nearly been reached, when taking a long-term perspective.  As always, investing is influenced by those human emotions of confidence and fear.

Logic too should play its part, and this is why some investors are getting proactive now.  It is however down to our political leaders to change the emotional momentum right now and we wait on their every word.