Izan de Bruin, director of JM F lscher stockbrokers, says by doing this, you may be selling some of your shares at lower prices, but you are also buying in at lower prices. When the market does pick up, quality shares are likely to be the first to rise. And even if the market dips further, they should still perform in the long run. De Bruin says in a bull market, when prices are continually on the rise, investors are often less selective as they buy into the market to get exposure to its upwards movement. Those sitting with extra cash could start hunting for good buys, but there is no need to rush.
Most players expect the market to move sideways for at least the next month or so.
Rogoff advises, however, that when evaluating different companies, investors should avoid those which are in a mature stage of development. Once you have identified a quality share that you would like to invest in, De Bruin recommends placing a buying order with your broker at a lower price. If and when the market does take a dip, you will be first in line to get the share at that price. Rogoff says you should ensure your portfolio is diversified and is spread across the different JSE sectors, but slightly more heavily weighted towards financial and insurance stocks which offer more stability. Certain sectors should be avoided.