Hi all,
Fear continues to dominate market direction. Officially we are in a "correction", which many define as 10% or more decline from the peak. Unfortunately the sentiment is so negative, that we could continue to go lower, if the Dow loses 10,000 and the FTSE 5000.
My strategy has not changed however. I am drip feeding funds into the market as we go lower. My latest additions are the following:
1. Averaged down on BP@£5. Continue to believe that BP is being oversold but I understand that is impossible to "catch a falling knife", therefore I will add more positions as we head lower. I will wait for £4.50 before thinking about buying another trench of BP.
2. Topped up in Newton Higher Income fund. This fund is paying at least 7% income at the current price and is invested in Big blue chips, that should do well from the global economic recovery and the weak £.
This is going to be a tough couple of months but remember Warren Buffets famous quote - “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”.
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