Is this a good time to invest

The COVID crisis has sent the stock market on a wild ride over the past few months, and while volatility may be a scary thing, it's not an unusual one. The reality is that this isn't the first time the market has seen massive swings in the span of a few short weeks, and with stock values still being relatively low, now's actually a good time to invest in it. But before you put money into stocks, it pays to check these important items off your list. Investing in stocks is a smart thing to do with your spare cash -- money you aren't using right now, but also don't expect to need in the near term. In fact, a good rule of thumb is to only invest money you don't expect to have a need for in the next 10 years. Here's the problem, though: Sometimes, we don't realize we need the money we invest until it's too late and that cash is tied up.

3 Things to Do Before Investing in Today's Volatile Stock Market

The COVID crisis has sent the stock market on a wild ride over the past few months, and while volatility may be a scary thing, it's not an unusual one. The reality is that this isn't the first time the market has seen massive swings in the span of a few short weeks, and with stock values still being relatively low, now's actually a good time to invest in it.

But before you put money into stocks, it pays to check these important items off your list. Investing in stocks is a smart thing to do with your spare cash -- money you aren't using right now, but also don't expect to need in the near term.

In fact, a good rule of thumb is to only invest money you don't expect to have a need for in the next 10 years. Here's the problem, though: Sometimes, we don't realize we need the money we invest until it's too late and that cash is tied up. Rather than run that risk, do a thorough assessment of your emergency fund. Figure out what your essential living expenses entail, and make certain you truly have enough cash in the bank to cover at least three to six months' worth.

In fact, given today's economic circumstances, you'd really be wise to favor the high end of that range, which means having enough savings to cover your bills for half a year's time. This especially holds true if you expect your income to be impacted in any way over the next few months. Right now happens to be a good time to invest if you have the cash and are good on emergency savings. But before you load up on more stocks, figure out which ones you already have. If there's a specific segment of the market you're already heavily invested in, it could pay to look at different areas to better diversify.

In other words, if you own a number of bank stocks , you might consider focusing on healthcare stocks right now, or auto stocks. Stocks can be risky investments in general, but right now, there are certain industries that are really feeling the impact of COVID -- namely, airlines , cruise lines, hotels, and anything travel-related.

Closures and supply-chain issues are also impacting retailers left and right. On the one hand, you may have an opportunity to buy some of these stocks at a substantial discount. On the other hand, we don't know what their recovery will look like, so make sure you do your research and focus on quality companies with strong business models and solid finances in spite of the crisis. Investing is a great way to grow your wealth, but you shouldn't do so blindly. Check these key items off your list before loading up on stocks during a volatile stretch -- like the one we're experiencing now -- so you're less likely to regret that decision after the fact.

Apr 2, at AM. Author Bio Maurie Backman is a personal finance writer who's passionate about educating others. Her goal is to make financial topics interesting because they often aren't and she believes that a healthy dose of sarcasm never hurt anyone. In her somewhat limited spare time, she enjoys playing in nature, watching hockey, and curling up with a good book. Image source: Getty Images. Stock Advisor launched in February of Join Stock Advisor. Related Articles.

Is Now a Good Time to Invest? Yes, stocks are "on sale" now, and for some investors, now is an ideal time to ramp up their. Now is as good as any to invest. The real truth is there is no ideal time to invest and that can be a challenge to get your head around if you're new to investing.

This copy is for your personal, non-commercial use only. Stocks are fluctuating wildly because of the economic slowdown induced by Covid Stock valuations are a critical component to any investing process—and a key part of the answer to that question. Stock valuations can do more than influence an individual buy or sell decision.

Millennial investor: the financial diary of a twenty-something's quest to invest her way on to the property ladder. One particular fund, Henderson Smaller Companies, that had been up by 30pc went down to a 28pc loss in just a few weeks.

The U. This ongoing volatility confuses many investors who assume that the right time to invest is when markets bottom out. The problem is that nobody knows when we've actually hit bottom.

Coronavirus Turmoil: Should I Buy Stocks Now?

The short answer is: yes. So now is as good a time as any to invest. The stock market ended its record-long bull run and slipped into bear market territory in March for the first time in over a decade. While no one can predict the future, historical evidence suggests that the market will recover. Throughout the entire history of the market, every downturn has ended in an upturn—and the market has gone on to set new highs.

Is This a Good Time to Buy? What Stock Valuations Say About the Covid-19 Market.

We use cookies and similar technologies on our websites and mobile applications to help provide you with the best possible online experience. By using our sites and apps, you agree that we may store and access cookies and similar technologies on your device. Any investment should be looked at as a medium to longer-term project five years or more. The sooner you start investing, the sooner your money could be working for you. Investing can seem complicated. Any investment decision should be based on the medium to long term — which we take to mean at least five years. By trying to time the market you can miss possible opportunities. Its share price movements provide a quick look at the stock market and the wider economy. It has consistently hit record highs over the past seven years. People who were waiting and trying to time the market may have been thinking that what goes up must come down, and the rally would have to end sometime.

Now is as good as any to invest. Trying to time the markets with any certainty is an impossible task.

This website uses cookies. You can read about the cookies that we use here.

Why it’s not a good time to invest in gold

Our website doesn't support your browser so please upgrade. Yes, things seem very up in the air right now. But when has the future ever been certain? The important thing to remember is that time is the finite resource in our lives. The sooner we start investing, the sooner we put time to work for us. The thing is, no-one can know for sure what the markets are going to do. So rather than timing the market, a better strategy is to focus on time in the market. That means leaving your money in the same place for at least 5 years. Because the longer you invest, the greater your potential for making a profit. Historically, markets tend to rise over time despite short-term fluctuations. There may be some losses along the way — even some bad years. But if you have a rainy-day fund to cover any emergencies, you'll be less likely to have to sell during a downturn. This means you can give your investments time to recover from any losses.

Why now could be a great moment to invest for the first time

Five ways to invest in gold. Gold prices ease on firmer equities. Gold rate eases on profit booking. All rights reserved. For reprint rights: Times Syndication Service. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart Visualize Screener.