One thing that investors are always trying to figure out is whether it is a good time to buy stocks. I don’t mean necessarily that they are looking for the best stocks to buy right now, but that they are wondering whether it is a good time in general to get into the market.
When it comes to investing, there is one thing that you can always count on: a wide range of views. This MSN Money article shows that you can find analysts who totally disagree on whether now is a good time to put money in the market or whether now is the time to pull out. The more you search for opinions, whether it be online or anywhere else, the more you will find that there never is much of a consensus.
In fact, the most scary time is when everyone seems to agree. That is when the opposite often happens. Sometimes for instance, stock analysts will be really negative on the market and it’s immediate future warning anyone who will listen that bad times are here and just ahead. They cite all the political and economic problems saying that the market can’t go higher. It is during those times of pessimism that the market will keep climbing the “wall of worry” and keep going up even though people think it won’t.
So, is now the right time to buy stocks or should you hold off and wait to see what happens? No one knows the answer even if they pretend they do. These experts you see on television look and sound very convincing but so does the knife salesman on late night TV trying to sell you the latest Ginsu knife.
The fact is that know one knows for sure and if you wait to buy, the market may go to 12,000 or 13,000 and you will have missed your chance. Just as likely, if you jump right in, the market may go straight down and you will feel like you are in a stocks for dummies scenario. Rather than time the market, it is best to try to pick the best stocks that are in a good position in relation to their competitors or industry. Picking strong and undervalued companies is usually the best way to build a portfolio that will perform well under any circumstances.