Anonymous asked in Business & FinanceInvesting · 1 decade ago

How long should we wait for the bull market condition ?

Around the world all stock markets almost reached their lowest index so for those who already have portfolio what should we do ? Buy some more to average or wait until the bulls come back.

5 Answers

  • 1 decade ago
    Favorite Answer

    Studies have consistently shown that trying to "time the market" produces far less return than a "dollar cost averaging" strategy. If you don't need the money right now, if it is for retirement then leave it alone. There has never been a 10 year period, including the Great Depression, where the stock market has lost money (the market as a whole NOT individual stocks). Even in it's worst period, the market has averaged 7.9% per year. Right now stocks are on sale. Warren Buffet has been quoted as saying that he is taking his cash reserves and buying stock in his personal accounts because the stocks are "on sale" and that he will make another fortune in the next 12-18 months. You wouldn't pass up 2 for 1 clothing, why pass up 2 for 1 stocks? As long as the company fundamentals are good (the same criteria that we should always use when buying a stock) then why not buy a bargain? People keep talking about the economy crashing, but do you really believe that Pepsi Co, Coca Cola, General Foods, McDonald's, Radio Shack, Dell Computer, Apple Computer, Home Depot, Lowe's, Dole, Del Monte, Johnson & Johnson, WalMart, and Long's Drug, and all of the other corporations are all going to go out of business?

    The market is cyclical so it goes up and down. Historically after a downturn (like now), the market waits 6-18 months and then goes back up to new highs. I don't need my money until retirement so I am just waiting and buying low because I know that when it goes back up over the next 6-18 months, I will have made a lot of money.

  • 1 decade ago

    Studies have shown that people who try to time the market consistently miss the market and end up making less money than do folks who continue to invest or hold. If you believe that a bull market will return before you need to pull out of the market, now would probably be the best time to invest as you will leverage the low cost of stocks. However, if you have a short time frame and think the bull is further out, then it would make more sense to hold what you have.

  • 1 decade ago

    " You don't count your money, until the dealing is done...."

    Right now, you should be rounding up money to invest,....

    and trying to figure what will give the best return....

    The bull market may return in January, or July, or next year, or 4 years from now... but not likely before the election..

    If McCain is elected it will go up sooner, the market won't trust Obama.....

  • 1 decade ago

    Buy NOW !

    Everything is on Sale!

    If you have cash then buy right now, otherwise if you buy when the bulls come back you have missed the growth!

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  • 1 decade ago

    wait til dow hits below 7200 before you think about getting back in


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