The stock market is down! The stock market is up! Is now a good time to invest? The answer? It’s always a good time to invest. In fact, you probably should have invested yesterday. Why? Because every day you invest your money, you’re more likely to earn money on your investments. With the world in the midst of a pandemic, stocks have been on a roller coaster over the last few months. The stock market went from all-time highs to all-time lows in just a matter of weeks.  If you have your money in the stock market, you’ve probably wondered if you should take out your money. And for those who haven’t even started investing, you’re probably wondering if now is a good time to invest.

That’s because of two factors:

  1. The stock market has historically gone up which means that even if your portfolio has a bad year and you lose money, you’re likely to gain it back in a few years.
  2. The power of compounding. Every time you earn money on your investment, it contributes towards the amount of money that you earn interest on and so on and so on. Think of it this way.If you invest Rs. 100 and you get a 10% return, you have Rs. 110. If you leave that money in the stock market, you not only gain Rs. 10, but you will also get a 10% return on that Rs. 110, giving you Rs. 121, and so on.

Why you shouldn’t time the market?

The stock market is unpredictable. No one knows how it will perform tomorrow or the next day, not even the experts.The best you can do is try to understand how stocks work and have an understanding of why they might go up or down. But if you try to wait until the perfect time to invest, you’ll drive yourself crazy.

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