A more appropriate question an individual investor should be asking is "Do I ever know when the right time to invest is?" Market timing is extremely difficult to do. Even the professionals who dedicate their careers to this question don't get it right most of the time.
A long-term investor should invest on a regular basis during good and bad times. In the long-term, you will average out the ups and downs of the market.
Don't invest based on emotions.
Peter Lynch, said: "Nobody can predict interest rates, the future direction on the economy or the stock market.
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SGops:
Thank you for this advise. Can you please guide me on what are the basic preparation I should be doing before getting into stock market
bigBull:
If you have any debt, depending on the interest rate you are currently paying your best plan will likely be to pay down as much debt as possible until getting down to 0, and then investing.
In the long term you can expect to make roughly 10% compound interest when investing in the stock market regularly over time. If your debt carries an interest rate of 5% or less, you are better off keeping the debt and paying it off on time.
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