“Be fearful when others are greedy, and greedy when others are fearful.” These intuitive words are from one of the greatest investors of all time, Warren Buffett. When other people are scared and desperate to sell something, then you can probably buy it from them at a cheap price. When someone is eager to buy something from you, it is probably because there is value that you are not seeing.

 

Everyone, from professional investors and economists to the average American who invests on the side, seems to be scared of the current investing landscape. In the economic climate of 2015, prices have plummeted across all asset classes. Commodities and emerging markets have seen massive outflows of cash, and the S&P 500 has lost value over the last three months. News stories might make our current situation out to be the end of times, but it is actually a great opportunity to invest.

 

 

“On a valuation basis, this is not a once-a-decade, this is a multi-decade opportunity to be buying very cheap assets,” said Franklin Templeton money manager Michael Hasenstab.

 

Of course, the downside of investing when markets are sinking is that prices could continue to drop. Timing the markets is not an exact science. Professionals who have spent their entire careers studying finance and economics can make educated guesses, but they can also wrong. The best way to take advantage of low market prices is to invest in something you are prepared to hold onto for the long haul. Prices, and the value of your acquisition, will eventually go up, but you need to be comfortable with the fact that you may very well see losses before you see gains.

 

Are global markets ready to come out of the current slump? Feel free to leave a comment or find me on Twitter @Andrew_Morse4