Should you Invest in the Market Now?

The pandemic made most of us scared of what’s to come next. With the stock market crash, a lot of people lost money. A lot of people also pulled out of the market. Should they have done so, though? Was it too premature?

Is now a good time to get back into the market?

What are your Goals?

When you invest, it should be for the long-term. There aren’t any quick wins or sure things. If you are in the market to save for a goal that is only a few months or even a year away, investing in the market right now isn’t a good idea. You need something more conservative so that you have some money at your deadline, rather than nothing.

But, if you have long-term goals, sticking it out in the market is a good idea. We all know the market will take its ups and downs. History shows that there are crashes and then there are ‘better times.’ It’s the average returns you should focus on, not the quick wins or losses that you may experience.

What are your Goals?

When you invest, it should be for the long-term. There aren’t any quick wins or sure things. If you are in the market to save for a goal that is only a few months or even a year away, investing in the market right now isn’t a good idea. You need something more conservative so that you have some money at your deadline, rather than nothing.

But, if you have long-term goals, sticking it out in the market is a good idea. We all know the market will take its ups and downs. History shows that there are crashes and then there are ‘better times.’ It’s the average returns you should focus on, not the quick wins or losses that you may experience.

Be More Conservative

Even if you’re an experienced investor, consider choosing more conservative investments this time around. Getting your foot in the door is great, but selecting all aggressive investments won’t help anything. Instead, choose a good mix of aggressive and conservative investments to ensure that you can ride out any storms that come.

Give your Money Time

The most important thing you can do is give your money time to grow. Like we said, some people lost it all, but that doesn’t mean it won’t come back. Many people got emotional and pulled out of the market out of fear, that’s not the right away to do it. How will you make your money back if you don’t let it sit in the market?

Try taking the emotion out of it. One great way is with a robo-advisor. When your investments are handled for you, there’s a lower chance of operating out of fear. That doesn’t mean that you shouldn’t ever pull out of the market – we all have to do it at some point, but giving your money a chance to come back is important.

What’s your Risk Tolerance?

What it all comes down to is your risk tolerance. What can you stomach? Will you stalk your accounts, driving yourself crazy to see how they’re doing? Or do you have a higher risk tolerance and know that the market will have ebbs and flows, but that you’re in it for the long run and will see it through?

Do a thorough self-evaluation. If you think you can handle what’s going on, now is a great time to invest. You can get in on some great assets that you otherwise wouldn’t have been able to afford. If there’s one positive thing that came out of the pandemic, it’s the lower threshold to get into the market. If you can’t handle it, at the very least, put a little money in the market and diversify the rest with other investments, such as bonds or T-bills that are much less risky and will provide a solid return.