Is Now a Good Time To Buy Stocks?

Is Now a Good Time To Buy Stocks?

The only way to buy low and sell high is when things are low. Then why is this so difficult?

Because market psychology goes completely against the grain. When stock prices are low, they are low for a reason, such as an international event like a trade tiff with China from a verbal joust from President tweet.

To coincide with lower prices comes with a negative emotional feeling. There’s a reason the market is down, and it makes you feel bad. Think about it, when is the last time the market had a significant drop and you felt good?

To make matters worse, the drop is temporary and as it goes back higher, you say to yourself; “next time the market drops I’m going to buy.” Guess what? The cycle continues. It is really hard to buy when it’s down because you feel the worst.

It works the same when things are good. When the market is making new highs, you naturally feel the best about your investments and you don’t sell.

Of course it’s more complicated than this, and truly understanding the market and knowing when to buy and sell should be left up to the experts. That’s why I always say, “Be the expert, or hire one!”.

So, is now a good time to buy stocks?

According to Merrill Lynch analyst, Jared Woodard states,

“Now is the time to buy risk assets” he told CNBC on Tuesday. “When investors are this bearish, historically, it’s been a great time to buy risky assets like stocks and commodities. Historically, you’ve had significant upside in the short term, on average around 6% returns on global equities on a three-month horizon, when sentiment is this bearish”.

…and I don’t disagree. As long as you do it right!

If you have any comments or questions, feel free to contact me.

“Invest for need, not for greed™”

Cheers -Keith


Smart Money Newsletter

Written By: Keith Springer

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