Choose the moment to buy wisely! To ensure the best returns, determine when the market price of stocks and assets will decrease so you can purchase them at a bottom price, as the adage says.
Three of the most frequent questions in different investment chat groups, in various forms, and my answers to them. Most importantly, for myself.
“Is it prudent to invest now?” – “Prudence is context-dependent.”
“How do you identify the optimal time to make a purchase?” – “While I cannot pinpoint the exact moment, constant investing over time is the strategy.”
“What is your view of current market conditions?” – “I analyze fundamentals, not speculation.”
The choices are yours, of course, after all you expected some secret to riches, and this provides no such simple solution? But patience, here is how I approach such questions:
I follow a straightforward technique: invest regularly. Given this, I invest frequently and persistently through various market cycles because:
⚠️ I cannot predict if prices have peaked or bottomed out with high accuracy.
⚠️ I lack the ability of market luminaries like Ray Dalio to foresee crises or George Soros to manipulate markets.
⚠️ Too many interconnected factors influence markets, and trends emerge and evolve swiftly – I cannot grasp them fully.
⚠️ Market direction remains opaque.
All I understand is the amount I invest periodically, the frequency of such investments, any dividends or returns generated, and the rationale behind selecting one company or asset over others. There, I concentrate my efforts.
Over a year has passed, yet my perspective remains unchanged. Equivalent uncertainty persists, an equal lack of knowing where prices may go and how markets may move evolves new risks but in adapted forms. Only one factor within this context can be reasonably managed – our investments. Their continuation, adjustment or cessation. And if queried similarly now, I would offer identical responses.
In summation, constant and balanced investing over time represents the optimal entry point. And yesterday offers the best time to commence such an approach.
Buy, but buy judiciously! Look for decreasing prices before purchasing to attain the most for your money. With regular investments and patience through cycles, success materializes.