What should you know?
At some point in your investing journey, you’ve likely asked yourself: “Is now a good time to invest?”
When markets are flying high, doubts often surface about whether prices are over-inflated, leaving little room for further growth.
When uncertainty raises its head, and markets pull back, fear creeps in about how much further prices could fall.
In moments like these, it helps to pause and zoom out.
The chart below shows that the cycle of “Too high” and “Too much uncertainty” has been seen many times before, and yet, markets have continued their long-term climb:
Why should you care?
Uncertainty is a permanent feature of investing. Learning to accept it, and not letting it deter you, is a crucial step on the path to becoming a successful long-term investor.
The key is to detach your investment decisions from current events and concentrate on the fundamental fact that markets rise over time.
Whether markets are up, down, or somewhere in between, the exact timing of your investments often becomes insignificant when viewed over the full course of your financial life.
When you zoom out, you begin to see the bigger picture: For long-term investors, it’s always a good time to invest your money.
