One of the most frequent questions we get asked are typically along the lines of “I’ve seen that the market is doing really well, is now the time to hop in and make some more investments?” Looking at the market, it’s very easy to see why so many people are wondering this and ask for advice on what they should be doing.
What we have been seeing in the stock markets over the last 8-9 year, a tremendous bull market run, when the market trends upwards. This typically gets a lot of attention, especially when we continue to hit market highs. For the S&P 500, this is the 8th consecutive positive quarter, and 18 of the last 19 quarters have been positive.
So the question is, is this going to continue? Is this the time to invest?
While we are still pretty positive about the market, no one really knows for sure what the market is going to do on a week to week, or month to month basis. What we do know is that if you have a solid plan in place to take income and grow your investments over long periods of time, we can be very confident and positive about that. If we develop a plan that is flexible with the market, that’s usually when we see a lot of success.
For a lot of people, timing often plays a big role in their investments. They say things like, “Oh, of course, I need to sell now because the market is up so much, there’s no way it can continue like this” or are only concerned if right now is the best absolute best time to invest.
This is a dangerous mindset, and can really get people to react in ways that might not really benefit them in the long run. The most consistent and logical way to make decisions on your investment is to really sit down and develop a long-term financial plan that is flexible with the market. That way, whether things are going great, or the market is not doing too hot, you’ll always have a plan in place to follow in order to make the most out of your money.
Any opinions are those of the professionals at Keiron Partners and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Keep in mind that individuals cannot invest directly in any index.