If you are asking the question whether this is a good time to invest in the stock market? Then read the following investing check list that will guide you to answer that question.
Are you young?
If you are in your 20s this is the best time to start investing in the stock market. Young investor have the advantage of time. The more time you have the more money you can invest over time.
Do you have the capital?
Most investors reason you should start investing immediately you have the capital. If you you keep the money in the bank you run the risk of spending the money.
The Price Earning Ratio.
Is the the Price earning ratio at historical low. A low P.E is a sign of a bargain more so if the company earnings are projected to remain stable.
Governement stimulus
Government stimulus have a habit of giving an economy a big kick. All that government money goes into the hands of consumers, who spend the money in making purchases. That consumer demand boosts companies revenue and profits. Higher profits translates to higher share prices.
Market Psychology
The best investor to explain this concept is Warren Buffet in the following quote
“Be fearful when everyone is greedy and greedy when everyone is scared”
written by Constantine Njeru
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