One of the basic rules of investing at the stock market is to buy cheap and sell high. The prices of the stocks listed at Bucharest Stock Exchange have relapsed to three-four year lows, and the premises of the downfalls are certain. Is it a good moment to buy stocks at BSE? Experts polled by Wall-Street explained what the safe baskets for your nest egg are and the issuers to keep an eye on in the midst of a bearish market trend.
Specialists recommend prudence on a long run
The primary recommendation of specialists is prudence. For a time horizon longer than two years, with a quarter of your available cash, you can buy stocks only with prudence and gradual amassment.
“My recommendation is to avoid investment of more than a quarter of the cash available now. Last year I was saying half, but now I suggest only a quarter. I still recommend however to invest with a more prudent pick of stocks”, said Paul Brendea, analyst at Prime Transaction (photo).
One of the most important factors that a broker should take into consideration when offering an investment recommendation, is the time horizon.
“When the investor plans for a long-term investment, I say that the gradual acquisition of solid stocks is the most fit in these times, a fundamental expertise of issuers highlighting an undervaluation, mainly due to the financial crisis. When the effects of the crisis will lose weight, they will be important premises for a regeneration of the global economy, the investors’ approach towards the attractiveness of issuers at BSE heralding a new bullish trend”, said Gabriel Lade, broker and front-office director at Intercapital Invest.
Thus, as the time horizon is a core factor, a long-term investment is highly indicated at this point. Marius Pandele, head of research at Vanguard recommends a 4-5 year period, interval when the global economy will revive
