Here’s How to Buy Stocks in this Market
For whatever reason, there seems to be a lot of uncertainty about whether or not people want to buy stocks right now. To be honest, it seems a bit absurd to me. There is no need to bring out the stock market statistics since the great depression, we all know that over time the market has gone up. So let me make a bold statement: I like it when the stock market falls.
Yes, I said it, but I suppose now I have to explain, and let me preface this by saying that I AM NOT with 5-10 years of normal retirement age. If I were I might be singing a different tune. Here’s the deal. Based on history, reinvestment of dividends and the fact that I like to buy stocks at a lower price, rather than when they are close to peaks, I prefer a bearish market. I want the best bang for my buck right now. Unless you are within 5-10 years or so of retirement, you should want the same thing.
It isn’t too different than other markets. Would you want to buy a house when house prices are up towards their peak, just because as of late house prices are screaming up? I hope not, because after the boom comes the bust. This is also how to buy stocks. Buying stocks and buying real estate are similar, and it sounds rudimentary I know, in that you want to buy low, and sell high. I know you have heard that mantra, but you’ve got to apply it too!
So what are the best stocks to buy? Well that is a debate for another time, but what I do know is that on any given stock, I’d rather buy it cheaper than more expensive. I know… duh. Stock buying doesn’t need to be rocket science, or any kind of science for that matter. Just know that you are in it for the long-haul, that this is to secure your future one day down the road, and not next week, and you’ll feel a great sense of relief as you suddenly realize that your portfolio losing 38% in one year, is not the end of the world… and not even the end of your journey to buy stocks for your future.
So what do you do now? Well for one thing, you don’t panic. Know that when the market is going against you, it is often a blessing in disguise. Set up shop with your preferred online broker to be able to easily buy stocks online, and begin to do so as your funds warrant. I won’t be spouting off some sort of ‘best stock to buy’ list, but I can tell you some of my favorite things to look for: I like to buy stocks that seem to be under-valued, and that pay a good dividend. I am also partial to well-known companies, the Coca-Cola’s of the world. In the end of course, buy stocks how you feel comfortable, and how you see fit.