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Is Now A Good Time To Invest?

This is the number one question I have been asked over the last couple of weeks.

As you would expect, the answer is not that straightforward.

First of all, what might be good timing for one person, might be bad timing for another person, based on their individual circumstances.

Secondly, no one has a crystal ball and so we don’t know how the share market will perform in the short term. The long term however, is a lot more certain.

What I do know is this:

  1. Investing should always be done with a long term horizon in mind, and so the here and now becomes somewhat less relevant

  2. You can reduce your risk by having a diversified portfolio, and by buying quality assets/shares

  3. You can reduce market timing risk by dollar cost averaging into the market

As per Vanguard:

Dollar-cost averaging simply involves investing the same amount of money into, say, shares or managed funds at regular intervals over a long period – whether market prices are up or down.

Investors practising dollar-cost averaging automatically buy more, shares or units in a managed fund when prices are lower and fewer when prices are higher. This averages the purchase prices over the total period that an investor keeps investing.

It also makes sense to educate yourself on investment principles, and I have a wide variety of resources on this topic:

You can also contact me if you have any specific questions, via Yves@affluenceprivate.com.au or 0432 885 295.


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