When is the best time to buy stocks? Should you try and time the market? No, market timing doesn’t work. It is always a good time to buy quality dividend paying stocks when they are undervalued.
No one can predict the future. Analysts, financial experts are no good at predicting the future than you and I. Therefore it is impossible for you to time the stock market, and try to buy stocks at specific times. Attempting to time stock purchases would be a full-time activity and you would be staring at financial data all day long. Most people don’t have the time or patience to read financial charts 10-12 hours a day.
“So, when economists report an accelerated change in the rate of growth from one period to the next, what does that tell you about the future? Absolutely nothing; economics is not a crystal ball.” (Investment Quality Trends, page 12, March 1, 2012)
Regardless if the stock market is up or down, there will always be individuals stocks that are undervalued. Remember the key is to buy low (undervalued) and sell high. How do you know when a stock is undervalued? Watch my webinar where I explain how to determine if a stock is undervalued.
At any given time certain industries might be down and they take good quality companies down with them. As an investor these are the quality companies you want to look for. Forget market timing, focus on undervalued quality dividend paying companies and you will do very well for yourself.
Did you enjoy reading this article? If so, I encourage you to sign up for my newsletter and have these articles delivered via e-mail once a month…and it’s free!