Should I wait for these toon to pass before investing?
It’s an election year. Should I wait? Or pull the trigger Investing?
In my opinion, you should always be investing. I actually just finished writing an article on here that hasn't released yet about this very subject.
I am a big proponent of dollar cost averaging and not trying to "time the market".
If you are unaware of what that is, it is essentially creating a plan where you invest a specific amount of money on a regular basis (month, quarter, whatever) in a stock, index fund, or combination of your choosing.
With dollar cost averaging you will sometimes buy at a higher price, and other times at a lower price. Over the long duration that you are invested though, you will reap the long term benefits of being in the market, as historically it gains about 10% per year. That is accounting for the years in which in had great downturns.
You are going to hear a lot of noise about being at a market top and that we are about to have a recession. This noise is always around. Don't get me wrong, we will have a downturn at some point, it is inevitable, but NOBODY knows when that is going to happen.
I see a lot of people holding onto their money in election years but I think it's ridiculous. Remember all the "experts" predicted disaster if Trump won the last election. The truth is, nobody can predict the future. If you buy smart, you'll survive any downturn and you'll thrive if the economy continues to grow.
@Cosmin Iuga I’d echo the other comments. No one has a crystal ball to predict what will happen and I wouldn’t let that impact your decision to invest. If you
buy good deals and are strategic then you will be fine. I wouldn’t let any unknown, like an election, slow you down for the next 10 months.
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