By Graham Summers, MBA
“Is is a good time to buy stocks?”
As an investment strategist, I get asked this question all the time. On the surface, it sounds as if the person is interested in making money from the stock market.
Having worked in finance for over 20 years, I’ve come to realize that when someone asks me this, what he or she is really saying is that they believe stocks are too risky for investing. After all, during the course of my career the markets have experienced three MAJOR crises. And who wants to put his or her money into an asset class that can lose 30% in a matter of weeks?
Let’s start with the basics of stock market investing.
Stocks are essentially a means of investing in human innovation. Nearly every stock trading on the stock market represents someone’s life work to build a better product/service. Sure, there is the occasional fraud or company that manages to go public without actually producing anything of value, but for the most part, the stock market is the closest thing to betting on human ingenuity/ innovation.
Now, humanity gets a lot of things wrong. But when it comes to inventing/ creating/ developing things, it’s RARELY a good idea to bet against us. For this reason, over the long-term, stocks tend to go up a LOT.
See for yourself.
So why not simply buy stocks ALL THE TIME?!?
Because, during the occasional periods in which stocks DON’T go up… they either A) lose a LOT of money or B) go nowhere for ~20 years.
See for yourself. I’ve illustrated those periods in which stocks didn’t do well with red rectangles in the chart below.
Thus, investors are in a quandary.
One the one hand, stocks tend to go up a LOT over the long-term. But on the other hand, there are periods in which stocks do NOTHING for ~20 years.
Thus, the focus for ANYONE looking to invest in stocks is to determine whether stocks are in a strong bull market… or if they are about to enter a prolonged period of ZERO returns.
I’ve developed a tool that takes ALL of the guessing work out of this problem. With just one look at this tool, you can tell whether it’s a good time to buy stocks or not. I detail it, along with what it’s currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
