When is the best time to invest?
The answer to that question is NOW! Here is the 3 possible scenarios U-shaped recovery, V-shaped recovery, W-shaped recovery and why.
drawn on MSCI World Index, area circled is NOW.
I’m not saying if you have $200 thousand, you should go dump in all into investment tomorrow. As one of the risk management strategies, break it up into a few tranches. It is impossible to time the market to the exact day. You would have been incredible if you can catch the low prices of a few months. Based on 3 assumptions: that there IS eventually going to be a recovery; your time horizon is 3 years or above; and you haven’t lost all your liquidity.
Of course, risk management and liquidity management applies. We do not have a gambling problem.
One Response to “When is the best time to invest?”
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Nice writing. You are on my RSS reader now so I can read more about wealth management from you down the road.
Allen Taylor