Posts Tagged ‘stock market’
Is now the right time to invest in the stock market?
June 30th, 2008
No one can accurately predict what the stock market will do tomorrow and then the next day and then the day after that. Because of this, investors can never be sure if NOW is the right time to invest. The market goes up and down with the only consent direction being positive over long periods of time. This is why NOW is always the right time to invest.
The theory of efficient-markets asserts that financial markets are informationally efficient, meaning that the prices of stocks, bonds, property, etc. are always priced correctly depending on all the information available at the time. Sectors go in and out a favor based on the newest technology, day trading/hedge fund activities, investors’ fear of the market, and a number of other factors, but all these factors are already built into the market price and can not be timed.
So when people ask me when the right time to invest is, I say that it is today, and not just today, but tomorrow and continuously into the future.
The only constant aspect of the stock market is that it has gone up in price over extended periods of time. Furthermore, the stock market has provided investors with better returns that any other asset class for the last 100 years. This is why stocks are essential to any balanced portfolio, and it is always a good time to buy.
Tags: stock market
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