Why NOW is a good time to invest when the markets are low
Buy low, sell high. That is the basic premise of investing your money. If you can buy at a price that’s likely to be lower than when you come to sell, then you are quids in. So it follows that you should at least try to buy low as far as possible.
That’s not always easy to do in reality. Take the stock market or the property markets as an example, you might be looking to invest at a particular time and that might coincide with the markets being particularly high. But what you don’t know is whether the markets are just high now, and are about to fall, or if markets will just keep rising.
Waiting is an option but it’s a risky one. It’s the same as investing. Whether you money is invested or not you still have an interest in the market movement that take place after you could have invested. So you might miss out or make some money.
What we do know is that with the stock markets for example, at the time of writing, the FTSE 100 is 10.23% lower than it was this time last year. So that would present itself as a good opportunity to invest so long as the strategy you invest by is the correct one for you.
The most fundamental principle in investing is to only invest according to the risks you are willing to take. As long as you have a well thought out strategy that fits with your wider financial planning needs, then you should consider it a fortunate opportunity if lower markets and uncertainty present themselves.
For more information about this subject contact Jaskarn Pawar, Independent Financial Planner on 01604 211234.
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