[Christopher]

Do you think the current market environment is still good for buying stocks? With interest rates, inflation, and the overall economic situation, could the risks in the stock market be getting bigger? Is it better to get in now, or wait and see for a while?

[Darren Sinden]

If only we had a crystal ball that allowed us to see into the future and to time the market to our advantage.

Sadly, we don’t have that ability, but what we do have are history and statistics to look back on.

The numbers tell us that the longer we are in the market, the lower the chance of realising a loss on our investment, simply because over time markets tend to go up.

Statistics don’t tell the whole story, and it’s also true to say that everyone’s financial circumstances are different, but by and large, most retail investors will be better off by making regular contributions/investments into a diversified portfolio, and leaving that to grow over time rather than trying to identify the optimum point at which to take the plunge.

Though, of course, we need to bear in mind that past returns are no guarantee of future performance.

If you are looking to trade the market rather than invest, then it’s a slightly different story.

Buying the dip has been a profitable strategy over the last 5 years and beyond, and given that September has the worst-performing month in the S&P 500 on average since 1928, there may be an opportunity to do so again.

However, we will need to consider the context of any dip and its causes, and the prospects for a rebound before doing so. And here I am thinking of the influence and performance of the Magnificent 7 stocks in the US, which are so dominant in driving market sentiment.

You can find more analysis of the markets here:https://goodmoneyguide.com/analysis/

[Johnwg70]

Yes but you must be careful what you buy. At present many people are buying gold as a safe haven

[Author]

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