Best time to get invested in stock markets is when the markets are low enough.
The question is –
- How can you ever know that?
- How can you be sure that the markets won’t go lower after you get invested?
- How can you be sure that the markets won’t go higher after you have have decided to wait?
Well, you can’t figure that out most of the times. So most of the times the right time to get started with the markets is today.
I am going to tell you about one of my closest friends. I am not going to mention his full, or even first name, as he does follow me on Quora and know he reads many of my answers. But I know he doesn’t mind me telling this story, provided I don’t mention his name. He was one of the few people in my network to successfully invest for Long Term.
However, even during March 2020, the lows for markets at 7,800 , he wanted to wait until “further falls”. Then markets hit 9,900 in April 2020. He thought it was a dead cat bounce. By Dec 2020 or so, he was even more worried. Markets were at 13,000. Record highs! Higher than all-Tym-High.
Then markets hit new highs.
In December, he finally bought in, but suddenly the reality dawned on him. He got in at 13,000–13,300, a discount of 80%+ compared to where prices were a few months previously, and yes he would have made 80%+ in the space of 9 months or so.
Yet he realized something. `I should just have invested from day 1`. He missed out on all those gains, and dividends. People forget that point as well. Even stagnant markets give dividends. So when you are out of the market, you miss out on dividends being reinvested, alongside chances to rebalance from bonds when markets fall.
He has finally realized that now. So always invest, for decades. Never be out of the market.
Thanx for reading🙂
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