Is this a good time to invest?

Question

This might sound like a really stupid question on the surface (and maybe it is), with the economy struggling, gas at an all time high, foreclosers everywhere, etc....

I have a fairly large chunk of money that I need to invest somewhere. I am considering doing some various asset allocation and investing these funds. I was hoping that this would be a smart move with the stock market and everything down to insanely low levels I'd think it has to come back eventually, and common sense says if you buy in when it's down, you have more to gain when it goes up.

Thoughts?

Answer 1

Just look at the long term charts for your answer. This is just a blip in time. Look at the 70s, horrible economy right? But the bottom of the stock market.

Answer 2

Diversify. Buy some stock, buy some bonds, hold some cash and most important, if you don't have the time to do you DD, put it in the hands of a professional you can trust. If you don't know anyone personally with a good reputation, buy the indexes like the QQQQ for the Nasdaq or XLP for Consumer Staples.

Personally, I own Apple Stock and the Hodges Fund symbol HDPMX.  The fund has a great track record and is well balanced between Small, Mid and Large cap equities.

Also like the Fidelity Contra Fund.

For a short trade, you can always buy airlines on days where oil moves way down. Impossible to time if you're not a pro. I've tried!

Good Luck.

Answer 3

If your time frame for holding these investments is three years or more, I would say this is definitely a good time to invest.  However, the current trend in the U.S. market is down, and it does not look like it is ready to turn any time soon.  Therefore, be prepared for some near term pain in case the market continues lower.  

You might also look for stocks that pay a nice dividend to cushion the blow a bit if they continue lower.  Also, I would not invest 100% of your funds right away.  Instead, scale into your positions a bit at a time.  

Remember the old adage..."buy when everyone else is selling, and sell when everyone else is buying."  We are getting pretty close to the point where everyone is selling, but not quite there.

Scott Cole

www.kungfutrader.com

www.theultimatestocktradingsystem.com

Answer 4

I wouldnt recommend putting large sums of money in the stock market as it is to unpredictable. Instead, i would invest in a retirement program (which will also allow you to collect interest over time). They will claim a certain percent of your paycheck (Weekly or Bi-weekly at 10% or 15%) and it will go into your retirement fund. You could easily aquire  500,000 to 1000,000 within the next 20 years.

Answer 5

I have the same feelings, though I think if we are patient prices will become even lower. I already have a Roth IRA account with multiple American Fund mutual funds. I think the Dow will go below 10500 points before November. Hopefully next year it will be in the 9000's!

So I'm waiting for the individual fund prices to drop back to 1998/1999 and 2002/2003 prices before I make another large purchase.

Answer 6

It is always a good time to invest. Dollar cost average your investments and ride the return curve up.

Answer 7

Yes, no and maybe.  It depends on your time horizon.  If you're investing for 20 years in the future, yes.  If you're investing for 3 months in the future, no.  If you're investing for five years in the future, maybe.  Whatever you do, stay well diversified.

Answer 8

Although I believe that the stock market is still headed down, there really is no way to know for sure.  If you plan to keep your funds invested for at least 10 years, investing in the stock market now is okay.  However, you should make several equal investment purchases so you can benefit from dollar cost averaging, if the market goes lower before it goes higher.

Let's say you have $100K to invest.  You could invest $10K each month for the next 10 months, or invest $5K per month for the next 20 months.  This way you gradually increase your exposure to the market.  If stock prices drop, at least some of your future investments will benefit from the lower prices.  If the market goes up, although future investments will be at higher prices, your previous investments will increase in value.

Also, do not put all your money into one stock.  Most people are better off investing in a few different mutual funds with different investment objectives.  There are times when small company stocks show great gains, while large company stocks stay flat, etc.  Whatever you decide to invest in, make sure you diversify by purchasing a variety of investments.

Answer 9

hi

i am ibrar from chennai. i am a investment advisor.

first you should have a  strategy to invest. do u have strategy?

then only u can plan ur investment. its upto u to invest for long time or short time. both give different returns as per ur risk apetite. if u want details for any kind of investment you can contact me. i will guide you for all ur investment needs. my id is [e-mail]

thanks

bye