Should investors run to the hills?
Posted Aug 8, 2011 1:37 pm.
This article is more than 5 years old.
As the financial markets continue to shed capital, at least one economist is warning against everyone running for the exits at the same time.
Patricia Lovett-Reid with TD Waterhouse tells 660News investors should step back from the sell button for the moment.
“Have a look at what you’re holding and if it’s good quality, you know we’ve been through events before — and we will be through them again — so it’s just going to take some time,” says Lovett-Reid.
She believes smart investors will hold on for the time being, pointing out that a well diversified portfolio will carry the day. But she also understands the battered psyche of investors.
“It’s been bad news, after bad news, after bad news,” notes Lovett-Reid. “And so you can’t catch a break right now. And we’ve got to change the cycle. Until we change the cycle, we won’t the change the psyche of the average investor.”
Lovettt-Reid even says it might be a good time to start buying.
“Things are on sale right now,” she notes. “The PE” (price to earning) “multiples in the Toronto market and U.S. markets are very attractive to bond yields. So, you know, I think there will some” (reason) “to buy.”
Lovett-Reid concludes that investors need concrete news from world leaders on what they will do to stem the tide on the markets — not just more talk.
