MoneyTalk

 

Is It Safe To Buy Shares Now?

30 August 2010
In this week’s episode:

The recent raft of takeovers could indicate that now is the perfect time to invest in the stock market.  In this week’s Money Talk podcast, David discusses the issue with Maynard Paton, the Chief Investment Analyst of The Motley Fool’s very own share tipping service - Champion Shares PRO. A transcript of this podcast is also available.                                                                                                                                                                                                                                                                           RISK WARNING: The opinions stated in this podcast are the personal opinions of Maynard Paton and may not be representative of the content of the Champion Shares PRO service.  This podcast is aimed at UK investors. You run an extra risk of losing money when you buy shares in certain smaller companies including "penny shares". * There is a big difference between the buying price and the selling price of these shares. If you have to sell them immediately, you may get back much less than you paid for them. The price may change quickly, it may go down as well as up and you may not get back the full amount invested. It may be difficult to sell or realize the investment. * You should not speculate using money you cannot afford to lose. * Some securities may be traded in currencies other than sterling, and may also pay dividends in other currencies. Changes in rates of exchange may have an adverse effect on the value of these investments in sterling terms. You should also consult your stockbroker about any additional dealing or administrative charges. * We have taken all reasonable care to ensure that all statements of fact and opinion contained in this publication are fair and accurate in all material aspects. * Investors should seek appropriate professional advice from their stockbroker or other adviser if any points are unclear. * This newsletter gives general advice only, and the investments mentioned may not necessarily be suitable for any individual.

Paper Prophet! David Kuo and Maynard Paton
Paper Prophet! David Kuo and Maynard Paton

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

theRealGrinch 30 Aug 2010 , 3:35pm

Maton, likes to buy shares that drift down...hmmm strange logic.

DrDong1 31 Aug 2010 , 12:28pm

Sounds like Maynard needs to work on his market timing when buying shares ....

rober00 31 Aug 2010 , 4:57pm

With the many subscribers the service no doubt already has how can it allow yet more new members in?

Yeah right!!!

Whoops' was that a pig which flew by.

TMFDragon 02 Sep 2010 , 10:45am

Hi Grinch,

I completely understand you scepticism because it runs counter to prevailaing wisdom.

But if you are a buyer of shares over the long term you want to accumulate them as cheaply as possible. So, if nothing has fundamentally changed in terms of a company’s story then it means you are buying the shares at a better price. In other words, if a company’s profit and dividend payout has not fallen, then you are getting more bangs for your buck if the price drops.

Best regards

David

TMFDragon 02 Sep 2010 , 11:02am

Hi DrDong1

As an investor, you can only buy what you think is cheap when it is cheap. It may get cheaper after you buy it, but that should be seen as an opportunity to buy more. If you are an investor, it is not timing the market but time in the market that counts.

Best regards

David

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MoneyTalk is a podcast from The Motley Fool (UK). Hosted by David Kuo, it’s a lively roundtable discussion where Fool writers and guests from the world of money thrash out the financial issues of the day.

Join us as we take an irreverent look at anything and everything to do with shares – from how to pick your first share to how to manage your own pension to what mini skirts have to do with Britain's economy (quite a lot, according to David).

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About the presenter

David Kuo is The Motley Fool’s media personality. He can be heard on BBC London’s (94.9FM) Breakfast Show where he arouses listeners every weekday morning with his unique brand of financial news. He is also a regular commentator on national news programmes including CNBC, BBC News, and Sky News.

David stumbled into the world of broadcasting at the turn of the Millennium when he was invited to comment on the stock market crash. He says, “I think I stunned Londoners speechless when I said the good thing about the crash is that shares are now more affordable for people who want to invest in the stock market!”

His attitude to investing has never wavered, as he always sees downturns in the market as a buying opportunity for long-term investors.