Often times we hear about how now is not a good time to invest because the market is seemingly overvalued. While this statement has solid ground, let’s break it down how it actually impacts you. Warren Buffett has said that “time in the market” is more important than “timing the market”
If you invest all your money today and the market falls 10% then yes, you’ve lost 10% of your money. However, that’s not how you actually invest over a longer period – instead you put aside small amounts monthly or weekly. This allows you to take advantage of concepts called dollar-cost-averaging and compounding returns.
Every time you save & invest, you’re buying into investments. Now if the market is down since last month then essentially you’re getting more for your money. In the long run, stocks/markets/economies will go up (otherwise we’d be slowly heading towards a Mad Max world), resulting in your lower buy-in’s paying off.
Now back to the burning question of “is now a good time to invest?”, the answer is YES. If you don’t believe us, read what Warren Buffett has to say. The earlier you start investing, the more you can take advantage of compounding returns. Put simply, over time your investment returns will start making returns of their own, hence compounding your result.
So don’t wait, take advantage of time!
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