Hi All. I was interested to hear from users who are thinking of buying into the weakness in the UK market in the near future. Clearly there is a lot of volatility ahead but if this is your intention, are you planning to increase your positions in existing shares or buy new ones? I can see an argument either way and was wondering whether experience has taught any of you the better course? My portfolio is currently about 20 shares. Buying further shares would increase my diversification but averaging down would decrease my dealing costs in terms of dividend reinvestment and final sales cost etc. So, new shares or just more of the same companies that you have already researched? Of course, if you think it's mad to buy any shares right now, you can just say this too!
My personal take on this, (gut feeling only - I'm by no means qualified) is that with property shares, the share prices have dropped far too much. Yes this country uses a lot of builders from Europe, but the changes won't take affect for at least a couple of years.
On the back of this I have upped my holding in Taylor Wimpey (LON:TW.)
I tend to get excited when everyone else is panicking and selling their shares. This approach works if
A.) you can cope with a long time frame and
B.) you are looking at safe sectors and companies that you are confident won't go into administration.
Caveat - I've got (B) wrong before!
