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How to Potentially Benefit from the Credit Crunch

There are those individuals who try to 'time' their investment - that is, to buy in when stock prices appear cheaper (so they can benefit more as they recover). However, even experts seldom time the market successfully on a consistent basis so individuals could find this extremely difficult to do effectively.

So, how could you invest effectively in uncertain times?

If you are concerned about market volatility, a better idea might be to drip feed your money in on a monthly basis - in other words, invest smaller, regular amounts - to smooth out the risk of a price fall after you have invested by buying in at a range of different levels. This system is called 'pound cost averaging' and can offer benefits, particularly for nervous investors.

We can help you determine the best strategy for investment, please contact us for more information.

If you would like to discuss any of the points raised in this article, please contact us.

Whitehead Group Ltd is authorised and regulated by the Financial Services Authority. The firm is entered in the FSA’s register and our registration number is 118229. You can visit the FSA site at www.fsa.gov.uk/register
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