Is it the right time to buy shares?

With all the doom and gloom surrounding the global economy and the start of the recession, we have seen serious volatility in the financial markets where they are up one day and down the other. Due to this scenario, alot of investors have seen their share portfolios diminish in value. It is worth pointing out that financial markets decline when there is more selling than buying of shares. In this current economic climate, there is alot of uncertainty which in turn is leading to panic selling of shares. However, there are still a number of investors holding onto their share portfolios and hoping to ride out the economic downturn. Moreover, this current financial environment has led to bargain share prices for some blue chip companies. So the question to ask "is it the right time to buy shares?"

Well, the answer according to Warren Buffett (world's most respected investor) the present time is a good time to buy blue chip shares; the shares of some companies are at the lowest point in many years. This viewpoint of buying shares now might be at odds with some investors who opt to buy shares when the financial markets are thriving and prices overvalued. This thinking known as the herd mentality, is where people follow or are influenced by others to buy items, in this case shares. In other words, those with the herd mentality, are shying away from shares while savvy investors are seeing bargain shares. So, for those savvy investors with an eye for bargain share prices, this might be right time to invest in blue chip companies.