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Don't believe it

There's the old chestnut that I hear repeated often these days, the one about how it's times like these when you can make a lot of good investments. We should have our eyes pealed for all the bargains that will appear with falling prices. My financial advisor threw the line at me yesterday just after...

By Jonathan D. Miller | Updated on March 12, 2008

There’s the old chestnut that I hear repeated often these days, the one about how it’s times like these when you can make a lot of good investments. We should have our eyes pealed for all the bargains that will appear with falling prices. My financial advisor threw the line at me yesterday just after he showed me how much I’d lost  in the past two months — it was no small sum and I’m nearly 40% in cash.  “Hey, it’s a good time to invest right now, ” he told me. Yeah, and about a month ago he thought it was a good time to invest in financials, and he put a chunk of my change in a financial index fund. On that score, I guess it’s even a better time to invest in financials right now. And by the looks of it maybe better yet in a few weeks.

That’s the problem with the old chestnut. In a sinking market trying to find bottom with the economy shot, it’s a lousy time to start shopping and that’s why smart investors have so much powder dry right now. They’re waiting. On the risk reward side, especially after a big drop, aren’t you better off getting back in a little late than getting back in too early?

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