Will the market crash further?

In by Edward Summerhays1 Comment

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Edward Summerhays

I am a beginner who has been drawn to investing as a result of the market crashing. I have a bit of savings I want to invest for at least a year, to take advantage of the fallen market due to COVID-19. I have been keeping an eye on some stocks, but I don’t know when is the best time to strike. We’ve seem some pretty devastating drops in the last few weeks, however a lot of the stocks I have been watching have gone up a fair bit in the last week. Have I missed the boat on those cheaper prices? I am wondering if I should jump in now, even though stocks are up since last week, or if this is just the beginning and we will see further crashes, therefore I should wait.

  • Edit
    Malcolm Macleod

    I wonder this too.

    i have money in equities at the moment but have cash to buy more. i am thinking further drops depend on which country i want to invest within.
    For example in australia we are "flattening the curve' for coronavirus which would be encouraging for most investors. However, i am concerned about the magnitude of effect the governments early access to super (due to covid 19) will have on the ASX.

    reason being, i think most people who withdraw the $10,000 or less will be subscribed to a balanced fund. Because the superannuation funds have to respect approved withdrawals, they will need to sell assets to pay the money out. Money in infrastructure projects and property won't be liquid enough to sell assets proportionately. This may mean they have to sell more liquid assets like Equities. Thus creating a lot of selling off in the ASX once the approvals start coming in.

    Question is whether this sell off will be big enough to significantly effect the market.