Do not let the action in the stock market discourage you from investing.
I repeat:
Do not let the action in the stock market discourage you from investing!
Some people will tell you not to catch a falling knife. But that’s not what you’re doing when you invest.
I go into more detail on this topic in The Stock Market is For Everyone. Here are some quick thoughts as we end the week:
If you need your money in the next year or two, then leave it alone. We have no idea where the market will be in two years.
However, if your time frame is five to 15 years, continue to buy. I know it’s very difficult to do! But these are days on which you have to do it.
Now, how would I invest $1000 today? Here’s how:
1. Buy a low cost S&P 500 index fund and wait.
2. Take $100 and buy 10 different stocks. (See my videos here and here for suggestions.)
3. Take $200 and buy five stocks. Or $250 and buy four.
It’s entirely up to you.
When the market is like this, you will almost certainly be down soon after you buy. That’s the nature of the current climate, and no one can predict the bottom.
I do know that on average, the market is up two out of every three years.
Just hang in there.
My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.
Click here to be taken to its Amazon page.
(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)