Advisors, including myself, will tell you it’s difficult to perfectly time the market. No one knows when it’s going to be the perfect time to buy or sell. We don’t know the next “hot tip” nor do we have inside company information. What we do know is what history has shown us about the stock market. Although history cannot perfectly predict the future, it has provided us with useful data that can be used to make smart investing decisions.
Here is what we do know:
- Dollar Cost Averaging is a prudent strategy. You pick a stock, exchange-traded fund (ETF) or mutual fund and you invest the same amount at the same time regardless of what is going on in the market.
- There will always be market corrections. During these downturns, there are opportunities to buy securities that are trading at a discount.
- Diversification is the key to shielding your portfolio against bear markets. Spread your “eggs” across different baskets. Having all your money in one investment is risky.
- Most investors are not active traders. Actively trading your portfolio does not guarantee you will make money. A buy and hold strategy is a tried-and-true strategy for long-term investing.
- The Stock Market has corrected, pulled back, and crashed. It has always come back.
There are opportunities to be successful in a down market. All you need is a strategy and discipline.
If you want to learn more about investing in stocks, visit “She’s So Wealthy Academy”
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