Share Price Crash – Buy or Sell?

This past few weeks we have seen the biggest fall in stock markets for many years as the COVID-19 pandemic continues to spark concern and dominate headlines. Maybe there is worse to come?

Our previous article on Buying Shares in Ireland has been very popular this month . It compares the charges and fees when buying shares and shows which online stockbrokers are the cheapest. Our comparison showed that DEGIRO had the lowest fees.

We have seen a lot of interest from people in Ireland looking to invest in shares for the first time. Hundreds of people in Ireland have been finding our site by searching for things like ” How to buy Stocks and Shares” or “Buying Shares in Ireland
They are probably seeing the fall in prices as an opportunity to buy at a low price and hopefully see good gains over the long term.

Important : We must stress that all investing should be regarded as long term. There is risk of loss. The value of your investments can go up and down, and you may get back less than you invest. Do not invest money you might need to depend on in the near future.

Is Now A Good Time to Buy Shares?

When the stock markets crash, investors panic and sell shares to try and avoid further losses. This then brings prices down lower and makes things worse.

If history is a good indicator, the markets should eventually recover and go higher again. But trying to determine when this will happen is next to impossible. Stocks may recover within weeks or months, or we may be faced with a year or more of volatility and falling prices

Once every investor on earth thinks the world is ending, and pessimism is at a peak, most of the people who wanted to sell already have. That clears the way for buyers to swoop in and pick up bargain-priced stocks.

Banner - Savings (3.75% IR)

When markets drop, some people can make money. The key thing is to be ready for this to happen and to have the funds to buy up shares when the prices are low.
Timing the market is almost impossible – and you’re very unlikely to get the stock at its absolute lowest. But if you intend to hold shares for the long term, then it can be a good opportunity to buy them at a lower cost.

When the economy looks like it’s getting into an economic crisis, it can be a good idea to change to protective stocks connected to basic human needs, such as food, medicines, energy .

Also , utilizing exchange-traded funds (ETFs) with your stocks can be a great way to include diversity . More about Buying ETFs here

Some information about the Taxation of Shares here

If you feel safer with deposit accounts – check our listing of the Best Savings Rates