When Will The Dow Jones Start To Recover From These Four Year Lows?

The Dow Jones fell to its lowest value in four years this afternoon as the threat of a global slowdown and a potential recession weighed on investor confidence. Many people have become quite shocked about the severity of the recent falls and are starting to wonder just when the markets will recover.

So just how much lower can the Dow Jones go? This is an impossible to question to answer, especially for a novice investor such as myself. I personally believe that the Dow Jones will fall to as low as 9000 before starting a recovery, but this is just a guess of course.

Some big hitters are just waiting to make a move. These speculative investors like to buy when the markets are very low and we are surely close to where that mark is today.

I certainly would not be putting any lump sum investments into this current volatile and falling market. Today alone the Dow Jones has fallen over seven percent and to put in a lump sum seems just too risky to me. I understand all of the generalisations that people such as financial advisers make, statements like this lump sum investment should be seen as a medium to long-term investment is all well and good however when it falls fifteen percent in a month people start to worry.

I prefer to pay a monthly premium into my stock market based investments. This enables me to take advantage of what is called pound cost averaging. This is where the monthly premium purchases additional units/shares when the stock markets fall which aids the investment when the markets recover.

I am not becoming too worried at the moment and just hope that the recovery can come fairly quickly.

Steve Hill is a webmaster from Birmingham; he helps to promote a number of websites including:

http://www.stammering-stuttering.co.uk

http://www.adaptatech.co.uk

Article submitted Monday, October 06, 2008
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