Is now the time to be buying crashing shares at cheap prices?

Buying crashing shares today at cheap prices may not necessarily produce high returns in the short run. A number of risks continue to face investors, such as a challenging economic outlook and the ongoing coronavirus pandemic. They, and other threats, could lead to a further market crash over the coming months.

However, over the long run, the stock market’s growth potential could make now the right time to purchase a diverse range of shares. They could benefit from a likely return to a sustained economic boom and improving investor sentiment that lifts valuations across a wide range of sectors.

Risks facing crashing shares in the short run

Crashing shares may already be cheap after their recent falls. They may trade at prices…