When Should I Buy Into The Stock Market?
A volatile market, such as we are currently experiencing, can make timing the market seem impossible. When should you pull the trigger and buy into this unstable market? In my opinion, the best time for many is now. I am not saying this because of the current financial crisis, the announcements of possible mergers, or even because Warren Buffet is eying to buy, but because those investing with a long-term approach may be losing money by being too patient.
Patience is normally a good thing. Patient people tend to get along better with others, stay true to professional teams that never win Super Bowls (Vikings), and ultimately may end up living happier stress-free lives. However, when it comes to investing, being patient can drive a person crazy. Waiting for the market to reach a record-breaking bottom or investing in a company right before a major acquisition (which in some cases is illegal) is impossible and in the process of waiting, your money could have been nesting in a fund that at the very least would be earning you dividends.
I’m not advocating that today is better than yesterday to invest or that tomorrow you should pump your net worth into the market - I’m saying that gradual investments, made consistently, will return a peace of mind in addition to the delicious green stuff. For the reasons set forth, employee-sponsored retirement plans, which offer matches, are a great way for many to invest. This constant purchasing of shares in good times and in bad will eventually return yearly average you will like. Obviously, this somewhat conservative approach is not ideal for everyone, but for those of us who work full time and not within financial services industry, may be better off trusting a funds historical returns or as they say on the late night infomercial - set it and forget it. $
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Comments
Great advise, the snail maybe slow, but the important thing is that it gets to its destination. I get your point, set it forget it is better than doing nothing.
I agree that gradual investments, made consistently, are the best strategy.