Invest Now, The Stock Market Is On Sale!

February 1, 2008 · Filed Under ·  

NasdaqI have been reading around the blogosphere, in the news, and on TV, how many investors are very nervous right now. I just don’t get it. I suppose it is human nature, people want to bail when things are going bad. I look at the current state of the market as a great time to invest. It goes back to the wise adage that when you are considering selling, you should actually buy. How else are you going to follow the principle of “buy low, sell high.” This is especially true if you are a young investor like myself, because you have ample time to ride out the bad spells and will really grow your investments during the good times.

I talk all the time how you should only shop when things are on sale or when you have a coupon. Why should the stock market be any different? If stock in a quality company is going down, then the stock market is essentially putting that company on sale. I mean heck, the company is still the same company, just now you are armed with a “coupon” for 20% off the retail price. This advice holds true for a bull market as well; not the best time to invest because you will have to pay full retail price and your coupon code will not be honored!

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Comments

2 Responses to “Invest Now, The Stock Market Is On Sale!”

  1. Four Pillars on February 1st, 2008 6:57 pm

    Great post.

    Buying in tough times is part of the “buy low” thing - it’s hard to do for some reason. Most people (including myself) are more inclined to buy after a stock goes up.

    Mike

  2. Kyle on February 4th, 2008 8:22 am

    Mike, that is interesting. Good point, when a stock is going down I am afraid to buy since it has not bottomed out (probably), so then when it goes up you think it is going to go way up.

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