How Do You Know If It’s A Good Time To Invest?
This article is posted under Investing.
A friend of mine said that it would be a good time to invest now because the country just had an election and people are optimistic.
I agreed, but also disagreed with him.
I said yes, it is a good time to invest now – but the reason is not really because of the new government.
He looked confused.
And then he asked, “What do you mean?”
“Well,” I answered. “It’s a good time to invest now simply because today is always better than tomorrow.”
Many people tend to think about investing when things look optimistic, when the economy is going strong or when there’s a lot of good news around.
If you think this way, then you’re missing a lot of opportunities because theoretically, the best time to buy investments is when things are down and stock prices are cheap.
So how do you know if it’s a good time to invest? How do you see where the market is going? How can you predict where the economy is heading?
The answer is you can’t, unless you make it your “full-time job”.
And for several years, I tried to “time the market” – only to end up exhausted and in most accounts, disappointed.
And then I realized that the best time to invest is now, just NOW.
You’re never too young, invest as early as you can.
Make your investment horizon long and increase your risk tolerance, so you can “ride the market” and survive the slumps.
Invest constantly and with discipline. Believe that no matter how the market is, there is an abundance of opportunities where you can invest.
So again, how do you know if it’s a good time to invest?
The answer is simple – it’s always a good time to invest.
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Photo credit: FAB O LENS and Lyfetime
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Hi, my name is Fitz and this is my blog.
“….theoretically, the best time to buy investments is when things are down and stock prices are cheap.”
I agree. Last week I placed an additional investment in Banco de Oro’s UITF Equity Fund. The NAVPU went down sharply that time probably because of the uncertainty on how the first automated election will turn out. It was a good thing that the election was generally peaceful and orderly because this week, the NAVPU went up high again. The 10,000 pesos I invested gained P700++ in just one week. Imagine, if only I have one million pesos to invest, I would have earned 70,000++ in just one week!
You are right, start as early as you can just as Warren Buffet always says. It’s very important that you equip yourself with the necessary information about where you invest your money. Do not invest in something that you know little about. I have asked the same question if it’s a good time to invest because we have a new president and new government. But then again, today is always better than tomorrow when it comes to investing (and I mean starting early). That’s why most rich people are getting richer during the recession because they have the purchasing power and they use it well when they could get to buy stocks etc in fire shot prices.
That reminds me of a Chinese proverb: “The best time to plant a tree is twenty years ago. The second best time is now.”