Is now the time to sell or time to stay put with your investments? David shares what to look for to determine when we’ve hit the bottom and when to invest.
With the stock market down more than normal and seemingly bad news constantly coming out, are you wondering if the bottom is yet to come? Should you be selling your stocks or is it too late? Everybody is wondering which type of downturn this is and what to do that will prove to be wise in the long-run. There are a lot of opinions from the experts that don’t all agree, so how can you determine what to do?
David feels like we have not yet seen the bottom. For perspective, we’re down almost 20 percent right now yet still 3,000 points higher than we were at the bottom of 2008. What can we be on the lookout for? Is there strong evidence that inflation is under control? Another thing David says to look for is a strong pivot from the Fed away from raising rates aggressively. We need to achieve price stability. Another indicator is stock market internals. Right now we’re seeing lower highs and lower lows.
If you’re in your 20s, 30s, and 40s, this downturn is exciting as you buy these stocks on sale as you save for retirement. If you’re younger and saving money for a house in the next year or two though, this might not be the time to buy because you have a short-term use for that money. If you have a high-risk tolerance and have a long-term horizon, you can keep investing as you buy low.
If you’re older, likely to panic or have a low risk tolerance, this is not the time to be investing new money in the market. Instead, you should wait to see meaningful evidence of the bottom. Ultimately, focus on knowing who you are, knowing what your money is there for, and then investing accordingly
Listen to the entire episode or skip ahead using the timestamps below.
If you ever want your question spotlighted on the show or to ask David something about your retirement, email him at [email protected]
0:24 - It’s the dog days of summer!
1:38 - What do the experts say about the market?
4:26 - Is it too late to sell?
13:11 - Should we continue to buy even as it goes down?
"Know who you are, know what your money is there for, and then invest accordingly. "
– David Dickens
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CONTACT US
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