Dear readers, in today’s post, I am asking all of you on whether waiting for the stock markets to crash and then invest at one of the bottoms is a wise strategy.
To the critics, the answer is very simple: waiting for the stock markets to crash is not a wise strategy since it will take some years for the next stock market corrections to occur and the stock markets will have likely gone up in the interim: hence the investor will lose the opportunity cost while sitting on an investment warchest to invest in the next stock market crash.
While I respect the thinking of the critics, I would think if an investor already know that the stock markets have more or less reached the peaks and a stock market correction is very likely to correct soon, then waiting to invest in a stock market crash is a wise strategy.
This is why around 2019, I have pretty much scaled down new investments into the stocks markets and have started building my investment war chest for the next great stock market crash.
And that is why as investors are fretting now on how many of their investments have headed south due to the confluence of many factors, I feel great at my strategy, especially on seeing how much monies I would have lost on paper if I have invested into those stocks that might have attracted me much in the past but which I was disciplined enough to stick to my strategy.
There are many so-called financial gurus out there but like it or not all fundamental analysis and technical analysis carry with them certain assumptions. Assumptions being assumptions will render even the best analysis less relevant in today’s more volatile and dynamic market environment.
But don’t get me wrong. Invest in a stock market correction is just one of my investing strategies. There are really other methods which I employ to make the most sustainable profits from the stocks markets, yes sustainably and consistently.
If you like what you heard, please remember to stay tuned to SG Stocks Investing, one of Singapore’s most humble stocks and financial blog for all of you!