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I think £25k is a great time to work in the stock market and plan for a million. And I’m not alone. Canadian multi-millionaire and venture capitalist Kevin O’Leary thinks the recent volatility in the markets is a good time to stock up.
it has. CNBC A fall in the US stock market last week means volatility is back. And now he thinks it’s a good idea to buy attractive stocks on weak market days “We can’t imagine the bottom.”.
Opposite approach
Meanwhile, most retail investors like myself are known to take the opposite approach to investing. Lessons from Warren Buffett, Benjamin Graham and others have found their mark. And many investors look for value above all else when picking stocks. I think this is a key trick when you wish for a million.
So O’Leary’s call to arms must fall on deaf ears. And he really enjoyed my presentation. I’ve been buying stocks in bombed sectors for a few weeks now. But I think it is unwise to expect quick profits. The flexibility should work. And another key to investment success may be adopting a long-term approach. So, I’m thinking of holding my shares for at least five years and maybe longer.
O’Leary is one of those voices that I think is worth listening to. He has a solid track record of success as an entrepreneur. And it was featured in a TV series Dragons’ Den and the ABC series version, Shark Tank.
However, as always, the overall economic outlook is bleak. Central banks are raising interest rates to fight inflation. And they must perform a careful balancing act if they are to avoid stifling economic growth and plunging the economy into deep recession. So, it’s not surprising that stocks go up and down as they try to find direction. Central banks can suffer from wrong trades.
Signs of improving the basics
However, I am encouraged by the recent correction in many commodity prices. I’m talking about resources like oil, copper, iron ore, timber, wheat, oats and crude palm oil, among others. My guess is that lower prices will eventually affect finished goods and services, which will result in a braking action on inflation.
On top of that, the Drewry Composite World Container Index fell 8 percent last week. And now it’s 50% less than it was a year ago. According to Drewry Shipping Consultants, shippers are seeing continued improvements after two years of reduced transit times due to port delays.
I think that relief from the supply chain issues that have been reported in recent months is another factor that could help with inflation.
They think that such conditions are good for the overall economic outlook. And that could mean positive factors for businesses and stocks. However, I don’t expect to be right about all my stock picks. All stocks come with risks and potential upside. So I approach all my investments with risk in mind first. And another factor that I think is key to being successful when investing in stocks.