WHEN TO START BUYING BACK INTO THE STOCK MARKET
If you are like most people, you are probably a little gun shy about investing more money in stocks. While you may know how to buy stocks online, the biggest question is when to start buying stocks again?
The market went down from its high of over 14,000 to the mid 6,000 range and it all happened quite quickly. If, during any time in between you had bought stock, you would have been disappointed because things continued to go down. Many people bought stock at the 10,000 point and the 8,000 point thinking things couldn’t get worse. But they did get worse and people lost yet more money.
When the market got into the 6,000 range it slowed its downward movement and actually went back up into the mid 8,000′s from there. So, if you had bought when the market was at 6,500 or so, you would have a nice gain right now. Oh how nice it would be to be able to see the future.
The question is then, is the market on its way back down again now or should we be buying back in with anticipation that it will be going up? The big question whenever the market makes a big move downward is when to buy back in. It is an excruciatingly difficult question that even the most seasoned investor struggles with.
We all know that at some point in time, the stock market will reverse course and head back up. This may not happen as quickly or abruptly as it did on the way down but it will happen. When to buy back into stocks may not be evident at all as the market may slowely turn around and go back up almost too quietly to gain much attention. Or it may take a two steps up and one back, three steps up and then two back kind of mostion that is hard to identify as a clear move up.
Most people who invest in stocks have lost money during the last 2 years. In fact, many people who don’t actively buy stocks online have lost as well because they lost money in their IRA’s and 401 K’s which were invested in stocks. Many people have also lost a lot of their retirement money and have little left to invest. Those who do have more money to put back in will be the lucky ones because at some point things will turn around again. Those that are invested and learned how to buy stocks online will reap the rewards. The question then is not if, but when will the market turn around?
