Maybe you got a $1,000 bonus from work or a windfall from a recently departed relative.
Can you make more of it in the stock market?
But is it too late?
Should you be worried about the money youve already invested?
Markets occasionally get overheated or panicky.
Thats not a bad thing.
Its what makes it possible to earn many happy returns.
Unfortunately, its hard to time the market.
But its always fun to try.
Is Now a Good Time to Invest?
This article addresses when to invest.
First, though, you should ensure your money wouldnt be even better served somewhere else.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Let History Guide You
Past performance of the markets doesnt guarantee anything, but it does help with perspective.
Look at a long term chart for the market.
Start with the longest time period you could on the chart configs.
That might be over 50 years.
Eventually youll have some perspective on how the market has performed.
One example is how the market plunged during the pandemic.
Some stocks went down by more than two thirds.
Though many industries were stressed and a few companies would fail, many came roaring back.
Dont Pay Too Much for Profits
Wall Street calls profits earnings.
Professionals regularly compare investment prices to profitability.
Then the price to earnings would be 10, since the share price is 10 times the profits made.
Investors see that as a P/E ratio.
it’s possible for you to Google charts for the markets P/E ratio.
In May 2021, the P/E ratio for the S&P 500 was above 40.
That was a sign of a classic investment bubble.
Basically, everyone is fully invested, or at least close to it.
That suggests the next piece of bad news might cause everyone to take profits at once.
It doesnt hurt tothink like a millionaireeither.
And in the End
Predicting the markets direction is and always will be a challenge.
The most you should hope for is to be more right than wrong.
Even that will take experience and insight.
But you’re able to stick to a regular plan while always having an opinion.
That keeps investing fun while you continue to build wealth.
He is an adjunct professor of finance at Wayne State University in Michigan.
It sounds appealing right?
Check it out here!
