Is Now the Right Time to Invest in Stocks?
The US has been hit hard by the coronavirus pandemic. The current statistics show the total cases of coronavirus is over 15 million, with over 280,000 deaths recorded. That aside, the US just went through a highly contested election, which has had a great impact on the economy. These and many other factors have left many investors asking whether this is the right time to invest in stocks. Surprisingly, the best online trading platforms have been busy with trading activities, and many investors have reported good returns on their investments. Many top brokers have come forward to reassure their clients that things aren’t as bad in the stock market as many people think. Does that mean it is safe to invest in stock now? The answer is “Yes”. Here’s why.
Reports from top stock brokers show that the stock market undergoes fluctuations, and this year isn’t an exception. One thing that will always remain true is that, despite the ups and downs, the value of stocks keeps climbing.
For example, those who invested in the FTSE 100 Index three decades ago are now enjoying a 600% return on their investments. Even though there have been many market crashes within these 30 years, the returns are good.
So, when you want to invest in stocks, the right time to do so is now, but it would help if you entered this market as a long-term investor.
It is Now Easier than Ever to Invest in Stocks
If you had never invested in stocks, you might be excused for thinking it’s a complicated process. Gone are the days when you could have to invest time and energy looking for the best stock broker, fill so many forms, and make several phone calls before you start trading in shares.
With the advent of the internet and mobile devices, you can start trading in stocks right from the comfort of your couch. Just search for the best online broker app, download and install it on your phone, and you’ll be good to go.
Never Time the Stock Market
In all honesty, there’s no straightforward answer as to whether the stock market will provide you a friendly entry point today, after a few days, next month, or even next year. As Berkshire Hathaway puts it, there’s no value derived from stock forecasters because they rarely get it right.
Buffett is a hardcore investor and the chairman of Warren. He is a successful investor because he avoids market timing. Even if you are trading on one of the top online trading sites, if you rely solely on market timing, you may not make any progress in your investment journey.
Peter Lynch, another renowned investor, says that many investors have lost money by preparing for or anticipating corrections. For example, some investors sold their shares during the market crash earlier this year but failed to buy back the stocks when the market bounced back, fearing that it would collapse again.
Such investors have lost a lot since the stock market has been performing well. That’s why many trusted stockbrokers will advise you never to time the stock market, but to invest any time you are ready, and the right time is now.