Who Doesn’t Love a Bargain?

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Christmas, Summer, Closing Down, Renovation, Black Friday, Cyber Monday, Anniversary, whatever the occasion – who doesn’t love a Sale? The opportunity to grab a bargain and smile smugly as you were one of the “cute ones” who didn’t pay over the odds. People queue all night in some instances or spend hours online trawling for the bargains.

Television half price ……sounds good to me.

That laptop you were eyeing up before Christmas is €300 cheaper in the January sales…… happy days you think to yourself.

That nice new suit you saw, bit pricey I thought but now you can buy for €200 off…..yes indeed I will take it.

There is one Sale that happens, fairly regularly and on a large scale that people simply don’t like……the sale in the Stock Market. I mean who would want to buy shares in a company for $20 when they were $40 a few months ago – that couldn’t be a good deal. The risk averse nature of many investors perceive that company to be in trouble, better to stay away. Often people say  “I’m leaving my money on deposit for another while, the markets are very volatile” or “I will wait until the sentiment in the Economy is more positive before I invest”. What these people are doing is missing out on the “sale” – turning down the opportunity to purchase a company or fund at a reduced price. Would these people not buy that dress or that suit if it were marked down 50% - of course not, why not grab a bargain!!!!!

For the long term savvy investor they know that dips in the stock market can be their best friend ultimately as they benefit from what’s called Euro/Dollar cost averaging – in layman’s terms getting more “bang for your buck” – these people are the real “cute ones” grabbing bargains that will ultimately lead to a more prosperous financial future. As Warren Buffett once said “When people are being nervous, be greedy and when people are being greedy be nervous”.

So if you are in a position to invest for the medium to long term whether that’s via a Pension, Unit Linked Fund, Savings Plan or buying stocks directly remember that when there is a “sale” in global markets like there was in 2008, you can avail of some real bargains. Remember the old saying – “if you act in haste you repent in leisure” – stay the course, seek professional advice and only invest what you can afford. After all – who doesn’t love a bargain!

Pinnacle Financial Advisers Ltd t/a Blueprint Financial Planning is regulated by the Central Bank of Ireland. All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified impartial financial adviser before entering any financial contract. Pinnacle Financial Advisers Ltd t/a Blueprint Financial Planning will not be held responsible for any actions taken as a result of reading these blog posts