Is now the best time to buy?

[BottomBounce02]

With the stock market so low, it seems more sensible for me to buy now, but the problem is that I don't know if it is going to even go lower and lower before it goes up. What do you recommend?

[Hattias75]

No way would I be looking to sink any great amount of cash into stock right now. Everything seems to be falling, without fail stock across the board is slowly falling. I think we'll have up to a year of fall yet.

[mallymayu]

I believe we will continue to see a fall in many areas but then it will go back up. To me the best strategy is to start buying now in the sectors that will eventually go back up, like energy and technology. Make sure the company you pick is healthy overall and not ready to sink regardless. Then watch and add to your portfolio when prices drop more, if you like. As long as you are investing for the long term and hold the stocks for a couple of years, you will end up with a decent return. Especially now, because when this recession does turn around, we should see another period of prosperity and stock gains for several years at least.

[Hattias75]

Right, well stocks are at the lowest that we have seen for some years right now. There's no denying the temptation, but personally I would still wait for a few more months at least.

I agree that it will turn around without a doubt, but with how much longer I think it will go on, I would hang onto my cash for now.

[BottomBounce02]

Ahh, so you feel that they will keep on dropping and be able to buy cheaper? I am still expecting a rebound any minute. Not sure which minute though.

[mallymayu]

I agree that many stocks will go even lower over the next 9-12 months at least. However, trying to time it so you get a stock at the least possible price is a difficult game to play and even the experts don't get it right very often. If the price is good now and you're pretty sure it will go back up, start buying in judicious amounts. You can always add more later if it does drop but you will have missed out completely if it begins rebounding next week.