Has the stock market bottomed yet?

Has the stock market bottomed yet?

That’s the question everyone wants to know.

You might be wondering, is it safe to get in? Has the stock market finished declining?

You might be thinking if it is safe to get in, “then it would be a good time to invest, right?

The only problem is, that’s not thinking like a savvy investor.

When it feels “safe” to invest (as in “the coast is clear”), it is usually the time the stock market will decline again.

What you want to do instead, is:

1. Invest some of your money at regular intervals, so you are able to take advantage of buying while prices are low.

2. Have confidence that the stock market will rise, because the decline was not caused by an economic event, it was a health crisis that turned into a government shut-down of the economy.

3. Maintain a long-term perspective, i.e. that in 6 months, a year, or even better, 3 to 5 years, the stock market will be higher.

4. Understand that $6 trillion dollars into the economy, plus 0% interest rates and $20 a barrel oil, means we are going to have cash literally “sloshing around” trying to find a return on investment.

5. The only real choices to get a return on your money are real estate (at higher valuations) or stocks (at low valuations). Therefore, a lot of this money is going to find its way into the stock market and likely send it to all-time highs.

I can’t tell you when and I can’t promise you we have seen the bottom, but it should give you confidence, if you agree with the 5 points above.

It’s only a matter of time before the stock market reaches new highs, in my opinion. It may go down and test the old lows or even break to new lows. If it does, I hope you have the sense to buy.

Buying at regular intervals or buying the dips is going to be a strategy that could make you an awful lot of money.

Buying at regular intervals (called dollar cost averaging), is a good way to go because you don’t worry about whether the stock market has bottomed yet or not. You commit to buying at regular periods, which takes the emotion out of investing and ensures you are buying at bargain prices along the way.

Once you have averaged in, you hold on and feel great about the low prices in which you snapped up your investments, while waiting for the economy to rebound.

Any lows we have will likely be temporary, because there isn’t a lot of other places for the money to earn a return. The stock market is pretty much the only game in town. With savings accounts near 0%, where else are you going to put your money?

If you want help buying at regular intervals, and would like some instruction, knowledge, and an exact recommendation of what to buy and how much to invest, consider joining the VIP Experience at a special savings price.