Is now a good time to invest? Find out when to invest in this week's Arista Advice.
Hello, welcome to Arista Advice!
Question of the week is a common question that you may have all thought. Many are asking and many are not, but the internal question is: "Is now a good time to invest with the stock market at all-time highs?" The short answer is yes, yes, yes!
History continues to prove itself that with innovation, technology, breakthrough in research that new products and services are always being developed, and stock markets will always hit all-time highs. Many people say, "But it's too rich, and too expensive!" but that's what they said 10 years ago, 15 years ago and 20 years ago.
I've included this chart for you to take a look at. The research is on our side that shows that when we reach an all-time high with the market a year forward, the markets are still positive 14 percent. Three years forward from an all-time high, the markets are still positive at 10.5 and after a five-year period, the market is still positive 9.9.
Now when a correction, like March of 2020 with COVID and that uncertainty and the shock and the surprise of a pandemic and a virus that surfaced, and we're still battling every day, let's look at the decline. After a market correction a one-year time of passage, a three-year time of passage, and a five-year time of passage all has positive numbers.
So what's the takeaway? Always invest! If you have cash and you're waiting for the right time, you may pass it or you may get it right, but the most important thing is to be timing in the market versus timing the market. Time in the market is so much more important than trying to time the market.
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