When will it be safe to invest in the market again?

Question

When will it be safe to invest in the market again?

Answer 1

The time is always right if someone is investing for the long term, does not try to market time, diversifies and keeps costs low (no financial advisor fees, uses low-cost index funds).

The time is always wrong for people that have a short time horizon, want to chase past returns, don't know how to diversify or assess their risk tolerance.

Answer 2

There is no safe time to invest in the market because you are never guaranteed to receive to fix return in your investment. There is always an opportunity for you to make money if catch the right sector on time.

We all know that financials are not doing well at this moment, but for someone who is looking in long term wise, it is the best time to get in.

Answer 3

"When they are crying then I'm buying".  (A contrarian's motto)

I have seen a study that based on past history theoretically invested at the high of the market each year and compared that to investing every month.

They found at the end of 10 years it didn't make a big difference in the return because the market rose more year after year than the effect the volatility had during the year.

Although I am not expecting great things soon, currently we are about half way between the two year low and the two year high.

The way I look at it is this: It can go up or down but is it more likely to go up than it is to go down?

I think up is more likely so I put my money back in.

JMHO

Answer 4

It's as safe right now as any other time to invest.  Risk of recession is most likely already priced in.  The sectors that have been beat down the most recently are usually the safest also.  If you always invest when the markets have been doing well you will most likely always do poorly.  Don't shy away from a down market, that's when all the money is made.  You don't have to go all in but it's crazy to be sitting on cash when the market's been getting pummeled for a long time already

Answer 5

When you feel it's safe, don't put your money in before that.

If you don't like the direction the stock market and the US economy is going, consider trading Forex.

Answer 6

The market is never "safe"  however studies have shown that over time people who have invested money in the market even at its high point will do well over time.  The best course of action is to be 1. Well diversified - stocks, bonds, real estate,  have different asset classes and don't invest strictly in US stocks

2. Get quality asset managers, for small investors they should be mutual funds, I would stick with No-Loads.

3.  Remember that 90% of a persons performance comes from asset allocation.  That is what proportion of your money is invested in stocks, vs. bonds, vs. other investments.  The younger you are the more you should have in stocks.

4. Rebalance your portfolio annually.  If you have a run up in stocks beyond what your allocation calls for, sell them off and re-invest in the other asset classes.  

Trees do not grow to the sky.  If you do not sell off your winners and prune them they will eventually become too high a proportion of your portfolio and the market will correct if they become too pricey.  It sounds counterintuitive but you prune your winners to invest in the losers.  But it makes perfect sense. You are selling high, and buying low.

Answer 7

there never was a time when it was not safe to invest in the stock market.  

There are always bargins out, you ust have to look for them

I

Answer 8

If you're a long term investor and not just running after the trend of the week, it's safe right now: the stocks you buy are just on sale.

Answer 9

There's never a "safe" time but now is actually a perfect time to invest. This is when the rich get richer.

Answer 10

It is always safe and profitable if you know what you are doing and always quicksand if you do not.  The more you know and the more skill you have, the safer it is.  And, more profitable.

Answer 11

when it has bottomed out.