I keep hearing doom and gloom regarding the stock market, but I have confidence it'll bounce back soon enough with our Grand Emperor at the helm. My spouse and I are lookibg to invest in the stock market to start a nest egg. Now that the market crashed/is crashing, we're staying vigilant on when to start investing. When would be the best time? How should we approach this?
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Buy low, sell high.
Don't try to time the bottom. Let the upward trend firmly establish itself before buying in. Avoid the "fear of missing out" emotion and don't care if you miss out on the first 10% gain. There will be plenty more on top of that.
Don't expect a V-shaped recovery. There could be a bounce-back, but a very short-term one before another downward movement. Don't get suckered in, another reason to wait for the upward trend to firmly establish itself.
Also, the end of the virus won't likely be the end of the economic pain. It will take time for markets to understand the impact on the bottom lines of companies as a result of the virus after it begins to fade away. Another reason not to buy the first leg up when the euphoria of "the virus is over!" hits because there will be another leg down as revenue forecasts for the coming quarters are hit hard.
IMO, it's only when the revenue forecasts are solidified and start moving back up that the stock market will truly begin its recovery. That could take months.
Lastly, it's very possible that another wave of panic selling might hit in the fall over worries the virus will come back again. Be prepared to hit that sell button early.
I posed this question a few days ago. You can check my submissions for some of the advice I was given. My advice is this is pretty low. You might get it a little lower and perfectly time it to the bottom, but that’s impossible.
The best time is 20 years ago. The second best time is now. Invest in a S&P 500 or total market index fund. Over the long term nobody except maybe Buffet can beat them and Warren ain't going to be around for the long term.
Good books to read:
I agree with this. Invest and don’t try to time it.
In a short time POTUS is going to be shown to be correct about the virus drugs... and the Russians/Sauds cannot hold oil down very long probably. Other things are going to manifest too, and the Market will rebound as POTUS has said.
No one knows where the bottom is tho, the Enemy owns many banks and corporations, has manipulated monies around the globe many times in the past.
And pay attention to what you invest in, not everything will respond well. I wish I had bought more medical last time I moved my stuff around...just saying.
Give it a little time as you watch and see what companies/products you like. Don't worry about catching it at the perfect moment; when it looks to be rising invest, then ride along.
But make your strategy before then, for instance some auto-makers are retooling to make medical equipment, is that a thing? Do you want to invest in mutual funds or stocks or marijuana?
Figure that side out while you wait for the market to turn.
Good luck.Because of the Storm I'm down about a third of my savings. I'll ride it out and make it back when it does rebound. If people wouldn't panic like some of our Congress did by selling out we would all suffer less. Market brokers make money whether it goes up or down, it is movement that makes them money. So let it turn, invest and let it ride, don't try to play it tightly.
https://files.catbox.moe/g0smac.jpg
once i get a career im opening up a roth ira maxing that out and having a emplyor match 401k then buy open a brokerage account and buy index funds and hold till im ready to retire lol
First and more important rule of investing:
Do not invest money that you may need in the next 5-10 years.
If you need the money earlier, you may be forced to sell at a loss.
Give it a month or two, or a few weeks for the virus to settle down.
Disclaimer: those hellbent on the destruction of Trump WILL DO ANYTHING to crash the market further to keep him from getting re-elected. And when he is re-elected, the market will rebound like gang busters.
As stated, there could be a few bumps between now and November that will terrify investors and the bad news investment bears.
As others have said - buy low, sell high.
Repeating:
This is not financial advice, I am INCREASING my 401k investment, until such time that the markets recover. YMMV