How do you feel about investing your money given the apparent national recession we're facing?

Question

How do you feel about investing your money given the apparent national recession we're facing?

Answer 1

For long-term investing (the only kind that makes sense), it's a good time to invest.  For day traders... well, day trading is for suckers.

Answer 2

I think the safest bets right now are 401k, IRAs, CDs, and savings accounts.  I would stay out of the market right now if it could be helped.

Answer 3

I would rather wait for some time . I always prefer to invest when there is a rising fall . This means I would start investing when the prices have just started to rise .

Though I feel at this stages investing in hsbc shares is good . Its prices will fall soon

Answer 4

Buy low, sell high.

Very simple idea.  Very difficult execution.  

The reality is that going against the crowd is difficult because (1) you are doing the opposite of what everyone else is doing,  (2) "everyone" is looking at like you are an idiot, and (3) it often takes so long to be proved right that by the time everyone knows you did the right thing, they are doing what you were doing...and know you are doing something else.

Getting it right in the long run is a function of building a plan that suits your strengths and ensures you stick to the plan when your weak points come up to bat.

Specifically with regard to the stock market in recovery:  the bottom line is that if you are not always in the market you are going to miss the market first move up.  And, unfortunately for the weak-kneed, the first move up is often the biggest.  Miss it and you will spend the rest of your time trying to catch up to the average return.

(Not "always."  There are no sure things.  But most of the time, the market turns around quickly leaving many people sitting on the sidelines)

Answer 5

Great time to purchase financials for the long-haul. Like Buffett says "an awesome company at a fair price is better than a fair company at an awesome price". I have asked a similar question and got some great answers too.

Answer 6

Technically we are not in a recession yet.  By the time you see data confirming it, we'll likely have it actively behind us.

My personal strategy is to avoid sustained holds and move in and out of swing trades in quality stocks and index funds.  The financial ETFs have provided tremendous opportunities the last 3 weeks, as an example.  

Answer 7

Investing is counter intuitive. When the market is hot everyone wants to buy and when it is down everyone is afraid to invest. No one knows when the market will go up or down. There are a lot of "experts" but they really don't know - but they have to make a living so they say things like "It's a stock pickers market".

If you have at least 5 years before you will need the money it makes sense to have a diversified investment portfolio and to keep contributiing to it. Automate the investments by having money taken out of your paycheck or checking account. Make sure you have a few months worth of savings in a savings acct, CD or money market account.

It make take a year or two for the market to catch fire -- in the meantime you will have bought shares at a lower price.

Good Luck

Answer 8

there is never a better time to invest, then when prices are in the bargain basement, this recession will pass too.