when is it wise to invest in the stock market?

Answer 1

It's always wise to invest in the stock market, because the only real gains you get are over time. Your stock needs to sit for at least 10 years before you can really judge its returns. I recommend mutual funds because they diversify and you can get in fairly cheaply. A CEO friend of mine who makes $2 million a year told me not to bother with buying stocks myself until I had $100,000, because you don't have enough to diversify. With mutual funds, the gamble is much less.

Answer 2

Anytime! Why? Because if you have the discipline, invest a set amount EVERY month or week, and you will automatically achieve "cost averaging", meaning by investing a set amount, say $50 per week, you automatically buy more when the stock is low, and less when it is high.

Since investing should be for the LONG term, it really doesn't matter "when" you start because the stock will have it's highs and lows for the next 10-30 years you should invest. The real secret (in my opinion) to investing, is PICKING a good company, that has something we all need, today, and tomorrow! :)

Also, DO consider investing in stocks, not a mutual fund, especially if you are young, AND do your homework/research FIRST! A mutual fund typically has lots of company's in it's portfolio, which basically dilutes the risk/rewards, and will actually tend to follow the market as a whole anyway.

A balanced portfolio of STOCKS will reward you greater later on! Pick a few, up to maybe a dozen, I would go with 5-8 myself, and balance income with growth, risky with blue chips, etc.

An EXCELLENT place to do YOUR own investing, be it mutual funds or STOCKS, is Sharebuilder.com!

SEE: http://www.sharebuilder.com

Answer 3

If you are planning to invest for long term, anytime is a good time to invest. If you are planning to be a trader, then a good time is recession. When the stocks are selling at discounts.

As an investor, you dont care about the day to day market fluctuations, you just buy and hold it. Your chances of getting good returns are very high in the long run.

As a trader, you should take it as a business. Buy for less, sell for high. So, buy when the market is down and every one is selling. Then wehn the market picks up and everyone is buying, just sell them for more. The only problem is that no one can predict when the market is at its peak or at bottom. That is something of a risk.

Unless I have brains of Warren Buffet, I would never try to predict the market. I am a long term investor and invest regularly in blue chip stocks. I do not care wht the stock price is. I just buy them on the first of every month.

If you are new to stock market, i would recommend that you buy mutual funds. There are several advantages of buying funds v/s individual stocks. Some of them are listed below

1. Diversification. for as low as $50, you can buy a mutual fund that invests in say S&P 500 index. So, for just $50, you are buying stocks of 500 blue chip companies.

2. No trading fee. If you buy direct from mutual fund companies (Fidelity, Vanguard, TRowe Price etc), you will pay no commissions. Ofcourse there are annual expenses with funds.

3. Professionally managed. Since you are new to stock market, you would not know which stock to buy. When you put money in fund, a professional manager or a group of them will select stocks to buy. So, you can relax

And many more...
Good luck friend.

Answer 4

Its an engaging question. As youthful as you're, if the inventory marketplace tanks, you will have not have been given any subject returning from any losses. however the marketplace is amazingly extreme appropriate now. There are annoying indications on the horizon so it ought to tank quickly. of path it surely relies upon on making the suited investment decision by using fact whether the marketplace as an entire is going down, some shares would be going up. then you certainly've distant places shares to contemplate--and if the cost of the dollar is going down (which an excellent form of forecasters anticipate) then the cost of distant places holdings directly is going up. finally, you and you on my own could make the determination. as with any investments, its maximum suitable to no longer placed all your eggs in one basket. unfold it around. some people like gold, or different commodities. some people like the protection of federally insured bills. you ought to do a million/2 in a conventional insured financial corporation account and a million/2 in shares. yet learn your shares!

Answer 5

I dont think there is a wise time you just have to watch the stock market readings daily, because stock market goes up and down constantly,

Answer 6

i would say DON'T read the stock market quotes every day, just pick a good fund and invest in it every month, or every paycheck, if you check it every day you will end up stressing out over small fluctuations or trying to time the market and get in and out, and that doesn't work

Answer 7

Have you read any books by Suze Orzman? (I think that is how she spells her name) She is a facial adviser. Her books are easy to read and full of great advice. After reading one recently, my answer would be....

After you have purchased a home, set up a 401K, Roth IRA after contributing the max to the 401K and have made several long term, low risk investments. I'm sure you will get better answers but do check out her book.

Answer 8

At the end of a recession or just do dollar cost averaging over a 30-40 year period and therefore there would be no best time.

Answer 9

1. Whenever you have money you can live without.
2. When your risk tolerance won't give you a heart attack. (My portfolio value has a daily fluctuation of about two months' of my salary. Three down days in a row, and I'm nearing panic).

Answer 10

correction time means people cry, panic sell their holdings at throw away prices. this the better time to invest without fear

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