The stock market is dependent on a whole lot of factors. People say it is good to invest when shares are low and watch it rise. However, you can also lose A LOT of money. What should people look out for?
Additional Question: Is it a good idea to get loans from a bank, invest it in the stock market and pay them back when you have made money with their money. This way you make money without having any money at all.
Home | Investing | Blog article: How do you know when is the best time to invest in the stock market?
zyberianwarrior 2:02 pm on November 25, 2009
NEVER Borrow money to use it to invest.
as for the right time it really depends on the sector you are interested in. Oil will still comedown for a while but say maybe in janunary that will be the right time to invest. Holidays here meaning retial is a safe bet. Tech stocks are on a run (after thanksgiving hold what you got) Emerging markets are on a huge tear but you can find some good ones. I don’t like investing in a particular country. Heath care and housing has been beaten up lately so that might be a push. If the feds actually lower rates next year banking will get hot.
its what to look for is the key.
linnaete 2:02 pm on November 25, 2009
There is no *good* time to invest. The best plan is to pick a stock that interests you, and has solid earnings every year. Something that you know will be around for a while (i.e. Kraft) Watch the price for a few months and invest during a slightly "low" time.
The best time to invest is when you have the money available and won’t miss it. The stock market is meant to be a LONG TERM investment. ON average, long term gains tend to be around 12%.
As far as taking out money from the bank, that is not such a great idea. If you don’t have the money to invest now, you need to focus on paying your debts and securing an emergency fund (3 months worth of your earnings at least) before you look into playing the stock market.
Mr. Main Event 2:02 pm on November 25, 2009
Generally, the best time to invest in the market is when all the rich people and legendary investors are buying. For example, Warren Buffett – world’s most legendary investor – tends to buy at market bottoms. So, if you ever hear about Mr. Buffett buying stocks, then it is usually a good time to buy.
Getting loans to buy stocks is usually not a good idea. It is extremely risky and you can lose a lot of money by using that investment strategy. You’re better off getting a loan for your education or a real estate property.
john_mixer9 2:02 pm on November 25, 2009
It’s not a good time to get in now. You just missed one of the best rallies in history.
Keith T 2:02 pm on November 25, 2009
never risk borrowed money
and after 54 years on the planet it appears that when it looks like the worst time’
its the best time
Franco 2:02 pm on November 25, 2009
There are 2 schools of investors. Ones who like to buy when prices are falling, called contrarian investors and those who prefer to buy when prices are rising, called momentum investors. Each claim there method is best and they produce results to prove it, so who is to say?
On the whole it seems timing is not a big factor, the main one being to pick good stocks. But how to do that is a whole new story.
Steve R 2:02 pm on November 25, 2009
When stock companies have good earnings, yet something happens (e.g. terrorist attack) that forces the market to go down. When the dust settles, jump into the market.
dave m 2:02 pm on November 25, 2009
Always-
If you dont…that is the biggest risk one can take, bigger than any loss ever imagined.
Invest in a strategy, not the stock.
Pick a Target Asset Mix w/ your time horizon, match it to your risk tolerance. dont make it complicated! Dont manage your investments, give it to the pros, pay the fee, you’ll do better in the end.
Bruce (Bill) B 2:02 pm on November 25, 2009
Twenty years as a professional investor what I do is trade on techs. (learn to read them and follow strict guidelines). This will teach you to short at high trends and buy into low trends.
Good luck I could talk for hours . . .