#5 Is now a good time to invest?

Most investors tend to look for the ultimate time to invest. However, Felix Niederer points out that looking for the supposedly optimal time is the wrong approach. Instead of asking «when», one should ask, «Is there a right time to invest at all?» The answer to this question is clear: No, there is no perfect time.

The pitfalls of emotions

Investors often react impulsively to market fluctuations. When stock markets appear to be in freefall, fear overcomes them, and the desire to keep money safe becomes overwhelming. Unfortunately, many investors share this emotional reaction, which often leads to panicked selling when prices fall.

Conversely, when markets are booming and stock prices are rising, they feel the urge to invest even more. But again, they often follow the herd and buy at inflated prices.

Why there is no right time

The main reason there is no «right» time to invest is the nature of the markets. After a slump, stocks and other asset classes are often seen as cheap, while during upswings, prices rise. These fluctuations are inevitable and make it nearly impossible to predict the perfect entry or exit point.

The danger of the timing strategy

One strategy that is often discussed is timing the market. This means waiting for the markets to drop again before investing. This tactic can work, but it also carries significant risks. There can be long periods of time when markets trend sideways without a dip. During this time, the fundamental economy can continue to grow and the perceived overvaluation can be slowly reduced. Those who wait during this period may miss lucrative opportunities.

The alternative: a well thought-out investment strategy

Instead of looking for the perfect time, focus on your investment strategy. The key is to find a diversified investment mix that fits your individual goals and risk tolerance. Online wealth management, such as that offered by True Wealth, can provide valuable assistance.

Conclusion

The search for the «right time» in investing is a dangerous illusion. Markets are inherently volatile, and no one can accurately predict when they will rise or fall. Instead of investing time and energy chasing the optimal time, develop and pursue a smart and diversified investment strategy. The path to long-term success lies not in timing, but in a thoughtful investment approach.

If you don't already have a professional investment mix, it's worth considering the services of online wealth managers like True Wealth. This way, you can be sure that your investment goals and risk preferences are taken into account, regardless of short-term market fluctuations.

Do you have any questions or comments? Feel free to email Felix Niederer. See you soon!