The trick is determining when the bottom, the real one, has been reached. In the more optimistic scenario the opportunities for bottom feeding should be around now. Many companies, particularly the smaller ones, have lost considerable ground over the past year or so and should do better when the market turns around. Offshore too there are bargains in Asia if you believe the worst is now over. As a half-way house, listed property trusts and other companies paying high dividends tend to be more stable in a bear market.
Residential property is more tricky.
When inflation is low, prices can be extremely variable. In many areas of Australia house prices continue to fall despite interest rates at record lows. In others, prices are rising strongly. If we are near the end of the bad news then there may be some good buying, providing you are selective. For the more cautious investor, it is a time of wait and see and of adopting investment polices that give some flexibility.