Investors sometimes ask, “Should we wait until stock markets have bottomed before we invest?”
We would like to share two reasons why our answer is “no.”
- Stock markets bottom well before economic downturns are at their worst.
- Life is more important than worrying about negative headlines.
Stock markets look forward. Prices bottom long before corporate earnings improve. Investors miss the bottom because headlines are negative long after things have already gotten better!
Waiting for a “bottom” in stocks is very frustrating and can even be quite counterproductive. There will always be problems to worry about, but our expeience confirms that stocks climb a “wall of worry.” It is important to remember that bear markets reverse long before worrisome headlines will ever make us “feel” like investing”
Our mission is to look after the process of investing for you so you may spend more time doing whatever you love
“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”~ Peter Lynch
