Is now the time to invest

We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here. UK investment platform providers have reported a spike in account openings since the coronavirus outbreak triggered a market sell-off. But is now a good time to invest?

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 portfolios. But for others, it could be a huge mistake. By Paul V. In a matter of weeks, we went from business as usual to almost no business at all. Most companies have been forced to close their offices and move employees to remote, work-from-home positions — and those were the lucky ones.

Many others have been required to shut down and lay off their entire workforce. The shock to the economic system has been staggering, with unemployment claims jumping to record highs and consumer spending taking a sharp nosedive. And while the economy is not the same thing as the stock market, they do play off each other.

This sounds like a very unpleasant picture to paint about the state of the financial world. Because continuing to contribute to your investments right now — or even putting more money in the market — is the only way dollar cost averaging can work for you.

Think about it: The point is to average out the prices at which you buy into the market. If you stop contributing now, that means you get no opportunity to buy in at lower prices, and bring the average cost of investing down — leaving you with more returns to keep in your pocket. So, in general, yes, now could be a great time to invest into the market … if your situation allows you to take advantage of this opportunity.

This is true no matter what the market or economic environment looks like. Investing should be reserved for when you have a long-time horizon.

As we have seen, the market can be extremely volatile and rise or drop quickly. That could mean 20 to 30 years. If you need your money next year, you take on far too much risk of loss and should seek a safer vehicle for your cash. In this case, your first order of business should be building up your cash reserves. That may mean missing an opportunity to get into the market at a lower cost than you could have done just a few months ago … but having cash available in case things continue to go more sideways than they already have should be your priority.

Finally, jumping even further into the market right now may not be for the faint of heart or the extremely conservative investor. If you are risk averse, you may not like what we continue to see in the markets over the next few months or even the next year.

Just because the market dropped significantly does not mean it found a bottom. We could have farther to fall in the short term before we can bounce back for long-term growth. The more you watch the daily market movements, the more likely you are to feel overly emotional about your investments and make an irrational decision with your portfolio in the future. None of this necessarily means you need to stop contributing to the market. If you have a set plan, you probably want to stick to it.

This could be a deal for a long-term investor. If you think you want to invest more, make sure you commit to the decision. In he was named to Investopedia's Top Financial Advisors list. Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. Toggle navigation Menu Subscribers Log In. Search Close.

Store Podcasts Log in Search Close. Toggle navigation Menu Subscribers. Is Now a Good Time to Invest? Store Podcasts Log in. Getty Images. Sponsored Content.

Yes, stocks are on sale now, and for some investors, now is an ideal time to ramp up their portfolios. But for others, it could be a huge mistake. With the S&P down sharply from recent highs during this coronavirus market crash, is now the time to invest?

With U. For short-term needs, set aside an emergency fund in a high-interest savings account. I think the fear factor is really feeding fuel to the fire and is causing people and institutions to panic-sell and adding further downward pressure to the market.

According to experts , while there will be fluctuation, the rally appears to have legs. That's unfortunate news for those traders who panic sold assets to protect their profits, but it's encouraging for more recent investors and those pondering their financial futures.

They have an investment and financial plan. While no one could have anticipated the timing and severity of the current pandemic, our clients do have a plan that is based on realistic rate of return assumptions that takes the ups and downs of the market into consideration.

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

Global stock markets have been suffering amid the coronavirus crisis. Yet while a volatile market makes investors nervous, this could present an opportunity for those who continue to stay focused on their long-term investment goals. Yet history shows that, over the long term, markets will recover. The price of investments is influenced by supply and demand. For those in the market, the temptation may be to cash in rather than endure more falls. But while this is a natural inclination, doing so only serves to crystallise losses.

Is Now a Good Time To Invest?

In a bear market environment, when investors are understandably nervous, get-rich-quick investments will be peddled on the internet or by word-or-mouth. During such uncertainty, the last thing you want to do is dabble in any type of shaky and murky investment, especially if you have never done so before. Right now, it is essential for investors to face reality and recognize we are most likely in a bear market. Although there are many definitions, I created my own: When the major U. I would give it a week or two, if not longer, to sustain that level. There is no rush to buy. There is no reason to be first. Typically, bear markets see a rally like this, and typically, it fails. Therefore, as long as the major indexes remain below their day moving averages, treat it as bear market.

Millennial investor: the financial diary of a twenty-something's quest to invest her way on to the property ladder.

Yes, stocks are "on sale" now, and for some investors, now is an ideal time to ramp up their portfolios. But for others, it could be a huge mistake. By Paul V. In a matter of weeks, we went from business as usual to almost no business at all.

Is now a good time to start investing?

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. So even though it can be scary to watch the value of market holdings plummet, understanding the nature of the market means realizing that those prices are likely to eventually rise again. And investing while the market is down often means you can get a bargain. This time is no different. The amount of money you invest depends on your financial situation and your financial goals. Many experts recommend saving or investing at least 10 percent to 15 percent of your income.

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.