Should I Buy Stocks Now? 6 Factors To Consider

One of the biggest questions on everyone’s mind is if they should buy stocks now. When times are great and the stock market is at all-time highs, people often worry about an impending crash.

Not Many Alternatives To Investing 1. Sitting in cash: In the past, when interest rates were higher, money at least yielded a positive return.

2. Markets may not get lower:  Before the pandemic, many “experts” on TV assumed stock markets were high. After the crash and the subsequent rebound, the markets are now at higher levels.

3. When to buy:  Assuming you are sitting in cash waiting for the crash to buy stocks. How would you be able to identify a crash? Even legendary investor Warren Buffet was unable to time the fall during the pandemic.

While we may not agree with everything he says, there are nine decades of wisdom buried in Warren Buffett’s quotes.

Acknowledge The Volatility Stocks are volatile. Volatility is a feature of the stock market, and there is nothing you can control.

Figure Out Your Pain Threshold It can be hard to see your stock portfolio cut in half. During the housing crash, I was overweight in financial stocks. It was not easy to watch most of them drop by 50%, and some, like Lehman, even went bankrupt.

Define Your Time Horizon The 100-year chart shows that in some instances, after a fall, stocks did not regain their original levels for 30 years. However, if you held on to your stocks and kept dollar-cost averaging, you would be handsomely rewarded.

Diversify With Other Assets allocation involves balancing risks and rewards in your portfolio by investing in several different assets. The purpose of adding assets besides stocks is that when stocks are down, the other assets can help stabilize the portfolio.

Swipe Up for more on Should I Buy Stocks Now? 6 Factors To Consider