@conkers3 and @wheeliedealer have decided to combine their investing experiences to write this article. We hope that it helps all readers that find themselves faced with the investing dilemma of whether to average down.
Year to date Private Investors, Institutional Investors and Fund Managers have all been shell shocked by the volatility and the worse yearly start to Financial Markets since the onset of the Great Depression. This has left many investors scratching their heads. Should they reduce equity exposure, go to all cash and wait for the markets to stabilise or should they average down into those holdings that have declined?