Updated: May 22, 2020
A few weeks after the last election, a friend said that it would be a good time to invest because the country has a new president 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.
Are you afraid to invest? Then read this investing guide.
Photo credit: Lyfetime