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Absolutely! Whenever you see any powerful solid stock at a 5 yr low it is a great time to invest if you can afford to invest for at least 5 years. The market on average returns about 8-12% for long term, 5-40 year investments, depending on how you invest.
The best investors know that the best time to buy is when the public is in fear of recession. The problem is, most people have less money to invest during recessions and they are afraid of losing it.
Apart from individual stocks being at an all time low, the overall market is at a 5 year low, a great time to invest.
As I stated before, if you need the money for Christmas shopping, its not a good time to buy, but if you need the money for retirement in 40 years (hopefully you're starting early). Than now is an absolutely perfect time to invest.
Another thing, If this is a retirement account that you are setting up you will want to look into whether you should open an IRA or a Roth IRA. I wont get into the difference here but I am 20 years old and have an $8000 net investment (currently worth 5.5K due to the slumping economy) in a Roth IRA. I use vanguard.com but there are many sites to open up these accounts. I plan on investing again another 4000 into the total market this year.
Don't open up an E*trade account these are meant more for people who day trade or buy stocks individually something that you wont want to do.
As far as a personal tip. At this point in your investing career you want to probably open up a mutual fund type account (minimums range from 1000-3000) and put the total amount in a Total stock market index. This is your safest stock investment. It means you are buying a part of every single company that is publicly traded (in the S&P 500 or the Dow Jones depending). To check whether you lost or made money on any given day you can check to see if the overall market went up or down. Generally this type of investment will earn you 8% a year, CDs and money markets earn about 4.5%, and savings accounts earn much less. Some hedge funds will promise you returns of 12-15% but I warn you that for everyone of those who succeeds, one fails. Its better to get a return of 8-9% buying the entire market, then risk getting 3-4% for the same risk.
Kindof rambled I give myself a B- in knowlege of Finance, but if there is one thing I am 100% certain on it is that it is a great time to invest. The S&P index may drop to 700 but in 5 years I can at least guarentee you that it will be higher then when you bought it at 980 (if you bought it today). And hopefully it will be worth quite a bit more. My money is on 1500.
Good Luck
Wiki User
∙ 12y ago
Wiki User
∙ 14y agoTiming the stock marketis one of the mistakes that many investors do. Do not try to time the market. The Stock Market is always a good place to invest your money provided you know what you are doing.
Professional fund managers do not aim to time the market but instead they invest when they feel the stock is performing well and in situations where they fell the stock might underperform they exit the stock.
Wiki User
∙ 11y agoit is a very wise dicision to invest in the stock market if you know what you are doing.
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Is it good for college students to invest in the stock market?
Definitely, if you know what you are doing, it is a great time to start.
It is not the right time to invest in stock market and why?
There is no right or wrong "time to get into the stock market." It is always time to invest, as long as you know what you are investing in. If you know that a company will soon be making money because of Christmas or another holiday, than of course you would want to invest in it.
When is it a good time to invest in the stock market?
Timing the stock market is something that experts have been trying to do for a very long time but not many are successful always. It is always best to analyze the strength of a particular stock and figure out if it is a good buy and gain exposure to the stock. Instead of waiting to time the market.A fundamentally good company might outperform the market irrespective of whether it goes up or down.
Whats the need of investing money in mutual funds?
There is no mandated need to invest money in mutual funds. It is upto the individual to decide as to whether he wants to invest in them or not.Mutual funds are good investment instruments for investors who do not have the time or expertise to invest in the stock market but at the same time want to take advantage of the returns given by the stock market
Gain a Profit?
When investing comes to mind many people thing of the stock market. The stock market and investing in stocks is similar to all forms of investing from real estate to gold. When you invest in a stock, you buy the shares and hope they gain in value. An alternative investment strategy is to invest in something such as art. Art is something that over time can gain value and bring profits to the investor.
What is a good website to use to get information in real time about stock quotes?
Fisher Investments is the number one source to find all the information you need on stock quotes and the stock market. Their expertise is also the best in the market.
What was the average stock market return in the US for the period 1990 1999?
The average stock market return in the US for the period 1990-1999 was actually seen as being pretty good at 11.83%. It was a very good time period for buying and selling within the market.
What does turtle use her money for in the westing game and why?
Turtle uses her money to invest in the stock market and to buy a new bicycle. She wants to invest in the stock market to increase her wealth and to secure her future. The bicycle allows her to travel around Sunset Towers and gather clues to help solve the Westing Game mystery.
How was speculation bad for the stock market?
Speculation per se has always been a part of stock market activity. People invest, hoping for a personal gain. The money they invest can be used by companies to expand operations, provide goods and services, hire people. This is normal economics.Absence of regulation of the stock market leads to more and more risky investment, money managers manipulating prices to trick others into buying and selling unwisely so the managers themselves can get out at the right time with the maximum profit. That is bad for the economy.
What is the best way to invest in the indian stock market?
The best way to invest in the Indian stock market is to do thorough research on the companies you are interested in and their financial performance. It is advisable to diversify your portfolio by investing in different sectors. Additionally, keeping a long-term perspective and regularly monitoring your investments is important for successful stock market investing in India.
What are some of the most important factors to consider for first-time stock market investors?
You need to find an area in the market that you can realistically afford to invest in, realizing that you may lose some money before you are able to really gain any.
When is the best time to play the stock market?
Usually there is never a right time or wrong time to invest. Of course when the market trend is extremely down for a few days in a row you should be careful. Otherwise there are always some stocks you can invest in, you just need to find out which ones. Therefore you can go on various financial websites. On those experienced investors give tips on what to buy. Or you can count on technical analysis.
