21/01/2023
Dear Reader
As the year 2023 begins, we see indexs like NASDAQ grow $674 (6.5%) and the SNP500 grew $133 (3.5%) since the year started (Dec 30 – Jan 20). This immediately instils hope in the market for the year, as it should do for retail investors and people looking to grow their pensions. On this note, I am going to talk about the right time to buy and why there is never really a “bad time”.
When it comes to investing in the stock market, one of the most common questions is when the right time to buy stocks is. The truth is that there isn’t really a “bad” time to buy stocks, as the market is constantly fluctuating and can be affected by a wide range of factors. However, there are certain strategies that can help investors make more informed decisions about when to buy stocks.
One strategy that is often recommended is dollar-cost averaging. This involves investing a set amount of money into the market at regular intervals, regardless of the current market conditions. By doing this, investors are able to buy more shares when the market is low and fewer shares when the market is high, which can help to reduce the overall average cost of the shares they own without missing out on future growth, if you are always waiting for a dip, you’ll eventually miss out on profits as shares rise in value.
Another important factor to consider when deciding when to buy stocks is the overall market trend. If the market is generally trending upwards, it may be a good time to buy stocks, as the likelihood of making a profit is generally higher in a bull market – although emotions may play a major role in this, “The stock market is the only market where things go on sale and all the customers run out of the store.” — Cullen Roche. Make sure to take advantage of these sales as it will allow you to buy more shares in companies without spending as much, this is especially true if you’re interested in high dividend shares.
It’s also important to note that there isn’t really a “bad” time to buy stocks. Even if the market is in a downturn, there are always opportunities to find undervalued stocks that can provide a solid return on investment in the long run.
In conclusion, while there is no single “right” time to buy stocks, investors should be investing monthly and use strategies such as dollar-cost averaging and analysing market trends to make more informed decisions about when to invest. Ultimately, the most important thing is to remember that investing in stocks is a long-term strategy, and that the key to success is growing and averaging dollar costs over a period of time.
Anyway, that’s all from me. If you’re interested in these blog posts, do check back as I’ll be writing another post next week. I’ll be writing about dividends and why they play a major role in wealth building that many people don’t realise. Have a great week!
Ben J Kester
Managing Director of Ben J Kester Investments Limited
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Please note that the information provided in this blog post is for general informational purposes only and is not intended as financial, legal or investment advice. The information in this blog post should not be relied upon as the sole basis for making any investment decisions. The opinions and views expressed in this blog post are those of the author at the time of writing and are subject to change at any time without notice.
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