Saturday, 26 December 2015

Time to dip into energy and mining stocks?

The prices of energy and mining stocks have been pummelled over the past three years, battered by a combination of oversupply and poor demand especially in China. Though low prices do not necessarily reflect a buy signal, for the long term investor this might be a time to look at toe-dipping into the sector. A monthly savings plan would be ideal in which small amounts are invested regularly employing the benefits of pound cost averaging (or dollar cost averaging). However the smart investor should do their research and be selective in which companies to invest in. Alternatively a broad based fund would reduce the risk of investing in individual companies.

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