Asked on 02 Jan 2020
What are some reasons you'll hold back on S&P500?
Depending on your time frame. If you are a long term investor, it is always a good time to start investing. Because as time passes, the timing risk of investing will diminish.
'Invest', probably No.
'Trade', yes. Fundamentals are not reflected in the direction of the markets. The rally in the last 3 months are attributed to QE4, another unprecedented liquidity injection by the Feds. There are already several ticking time bombs brewing. But as long Fed keeps the music going, the show will likely continue for sometime.
Top Contributor (Jan)
Before you start investing, it will be best to understand your objective. Here are some questions to help you:
What is your capital?
How will you want to invest your capital? E.g. lump sum or an amount on a regular basis
How long will you want to stay invested? E.g. 10 years
What is your risk appetite? E.g. How do you feel about short-term volatility?
What is your objective for investing?
To determine if the market condition is favourable to invest, the question will be: Is there a right time to invest?
Accordingly, I have compiled a list of financial crisis and disasters since the 90s and every other strong reasons not to invest. However, the market has proven otherwise year after year.
Therefore, focus with the right investment strategy by knowing your investment objective. Then decide the tenure and decide if a lump sum or smaller amount works. Finally, invest into assets that suits your risk appetite.
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Always a good time to start investing in the best performing, most resilient economy in the world dating back to the Great Depression 1930s